Tokyo inflation data exceeds expectations, Japanese government bonds under pressure.

date
02/10/2026
Tokyo inflation came in above expectations and rose sharply from the previous month, which will put pressure on the short end of Japanese government bonds and flatten the yield curve. Traders believe the case for a rate hike this month is not yet sufficient, but the possibility is already very close. A next 25 basis point hike in December is almost certain. The USD/JPY exchange rate edged lower.