The Bank of Japan (BoJ) will revisit its bond-buying reduction plans at its June 2025 meeting and set new guidelines for April 2026. BoJ board member Asahi Noguchi said no immediate changes are needed, noting Japan’s recovery remains intact despite inflationary pressures from higher food prices and a weaker yen. He flagged rising US tariffs as a potential risk and emphasized the need for flexible policy and cautious optimism. Meanwhile, Finance Minister Katsunobu Kato denied discussing exchange rates with US Treasury Secretary Scott Bessent during the G7 in Canada, refuting speculation of coordinated FX intervention.

Bitcoin jumped past a record $109,500 as stablecoin legislation advanced in the US. With Democrats dropping their opposition, the bill now stands a strong chance of passing by the weekend, fueling hopes that regulatory clarity for dollar-pegged cryptocurrencies will drive wider adoption.

The US 10-year Treasury yield hovered near a three-month high of 4.6% on Thursday as investors assessed rising fiscal risks and weak demand in bond markets. President Trump’s tax-cut-heavy budget is expected to add over $3 trillion to the national debt, raising financial stability concerns. Republicans continue to oppose the bill unless it includes expanded deductions for state and local taxes. A lackluster 20-year bond auction on Wednesday further signaled waning investor appetite for US debt. Focus now shifts to Thursday’s weekly jobless claims.

Japan’s 10-year bond yields also climbed, nearing the 16-year high seen in March, trading around 1.58%.

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