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[BUSINESS] · Japan, United States · 18 sources

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Japan and US discuss yen weakness amid surging global bond yields

Japanese Finance Minister Satsuki Katayama revealed that during a recent summit in New York, US President Donald Trump expressed concern regarding the weakness of the Japanese yen. Prime Minister Sanae Takaichi reportedly responded by stating that an undervalued yen is problematic as a general principle. This disclosure, made following consultations with the Prime Minister’s Office, highlights a shared interest between Tokyo and Washington in addressing currency volatility.

To manage these concerns, Katayama announced that she and US Treasury Secretary Scott Bessent will maintain close communication on foreign exchange matters. This follows previous coordinated efforts by both nations to support the yen in July.

Simultaneously, global bond markets are experiencing significant volatility. The benchmark 10-year Japanese government bond yield reached a 30-year high of 3.115 percent on Friday, driven by rising US Treasury yields and inflation concerns. In the United States, 10-year Treasury yields have surged past the 5 percent threshold, a level not seen since 2007, impacting mortgage rates and corporate borrowing costs. These market shifts are being fueled by strong economic data, persistent inflation fears, and geopolitical tensions in the Middle East.

Entities

Bank of Japan · Donald Trump · Sanae Takaichi · Satsuki Katayama · Scott Bessent

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Sources

about 7 hours ago