Japan 10-year bond yield slumps after Trump imposes bigger-than-expected tariffs

ReutersLast Updated: Apr 03, 2025, 07:38:00 AM IST

Synopsis

Japan's 10-year government bond yield dropped significantly to its lowest level since February amid concerns over the potential negative impact on the global economy from President Trump's unexpected tariffs on imports. The yield fell by 13 basis points to 1.34%, marking its sharpest decline since the 1987 Black Monday crash.

Japan's 10-year government bond yield fell sharply on safe-haven bets amid worries that U.S. President Donald Trump's bigger-than-expected wall of tariffs would dampen the global economy.

The 10-year JGB yield fell 13 basis points (bps) to 1.34%, its lowest level since February 26 and its biggest drop since August 5, when bond and stock markets were hit with their biggest swing since the 1987 Black Monday crash.

Trump said on Wednesday he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries.

Bonds with other maturities have not been traded as of 0005 GMT.

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