[Japan Market Conditions] Long-term interest rates rise, salaries grow and Bank of Japan interest rate hikes are expected - yen is bought

Updated 2024/7/8 15:28 JST (some excerpts)

Long-term interest rates rose in the Japanese market on the 8th. There was a growing view that the Bank of Japan would raise interest rates at the end of the month in response to monthly labor statistics. Observations of interest rate cuts in the US have been added, and yen is rising against the dollar.

The yield on new 10-year bonds rose to 1.085%, 2 basis points (bp) higher than the previous weekend. According to the May monthly labor statistics survey announced on the 8th, basic salary showed a high increase since 1993/1. It will be a tailwind in terms of policy for the Bank of Japan, which is searching for a period for additional interest rate hikes. There is a high possibility that the US will cut interest rates twice by the end of the year due to a slowdown in US employment statistics, and the yen will rise to the first half of the 160 yen range at 1 time. Japanese stocks continued to fall.