Trump’s Fed battle raises risks of ever-higher yields for Japan

Trump’s Fed battle raises risks of ever-higher yields for Japan

Source: EODHD - https://www.investing.com/news/economy-news/trumps-fed-battle-raises-risks-of-everhigher-yields-for-japan-4210291
Published: Aug 26, 2025 4:21 AM

By Kevin Buckland and Rocky Swift TOKYO (Reuters) -Japanese government bond yields tested record highs on Tuesday after U.S. President Donald Trump’s attempt to oust Federal Reserve Governor Lisa Cook, raising concerns about inflationary pressures under a potentially more dovish central bank. The 30-year JGB yield returned to an all-time peak of 3.215%, matching Monday’s top, tugged higher by a 5 basis point jump in similarly dated U.S. Treasury yields following Trump’s announcement. Long-dated Treasury yields rose on expectations of higher inflation under a central bank that would prioritise support for the labour market over taming consumer prices, while short-term Treasury yields - which...

Market context: This update is relevant to USD traders, with USDJPY as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.