JPY Weakens as 10-Year Bond Yield Hits 3% for First Time Since 1996

The Japanese Yen (JPY) weakened against the US Dollar (USD) as the 10-year bond yield hit 3% for the first time since 1996. This milestone was reached after US Treasury Secretary Scott Bessent signaled that the United States wants the Bank of Japan (BoJ) to raise interest rates more aggressively.

Bessent's comments, made on Tuesday, suggested that he believes the Japanese government and central bank will take action to strengthen the JPY. However, despite these expectations, the JPY remained weak against the USD.

Japanese Finance Minister Satsuki Katayama met with Bessent and agreed that orderly JPY movement is critical for global market stability. The two countries also confirmed that continued cooperation would contribute to this common goal.