Japan’s 10-year government bond yield dropped to around 1.45% on Thursday, hitting a four-week low as renewed tariff threats from US President Donald Trump spurred demand for safe-haven assets. Trump said he plans to send letters to trading partners within the next one to two weeks, detailing unilateral tariffs aimed at pressuring countries into new trade agreements. Japanese yields also tracked a decline in US Treasury yields, following softer-than-expected US inflation data that reinforced expectations for further Federal Reserve rate cuts this year. In Japan, business sentiment continued to weaken in the second quarter, reflecting rising uncertainty over US trade policy and its impact on the country’s export-dependent economy. Meanwhile, Bank of Japan Governor Kazuo Ueda reiterated to parliament on Tuesday that the central bank is prepared to raise interest rates again—provided there is sufficient confidence that underlying inflation is moving sustainably toward the 2% target.