BOJ Rate Hike Looms Amid Fears of Inflation and Yen Weakness

Japan's 10-year government bond yield held steady near its 30-year high on Thursday, staying just below 3% as investors awaited the Bank of Japan's policy decision.

The BOJ is widely expected to raise borrowing costs on Friday in response to persistent inflationary pressures. The upcoming rate hike has been signaled by policymakers who are looking to curb excessive yen weakness.

US Treasury Secretary Scott Bessent has repeatedly called for more aggressive tightening from the BOJ, echoing concerns about Japan's fiscal outlook amidst Takaichi's plans for substantial government spending and tax cuts.