Japan's 10-Year Bond Yield Eases Amid France Concerns and Strong Inflation Data

Japan's 10-year government bond yield has eased from its 30-year high as investors sought safe-haven assets amidst concerns over France's fiscal and political outlook.

The yield slipped below 3.1% on Friday, tracking a retreat in Treasury yields. Strong economic data supported Japanese yields, with Tokyo's core inflation rising 2.7% in September, exceeding the Bank of Japan's 2% target for the first time in nine months.

However, a summary of opinions from the central bank's September meeting provided fewer hawkish signals than investors had expected, indicating that policymakers were focused on preventing inflation from overshooting the target.

The government's ambitious spending plans and deteriorating fiscal conditions also put pressure on Japanese bonds.