Japan’s 10-year government bond yield rose to around 1.69% on Wednesday, edging back toward 17-year highs even as weaker-than-expected wage data cast doubt on the Bank of Japan’s rate hike plans. Real wages fell 1.4% in August from a year earlier, marking the eighth consecutive monthly decline as inflation continued to outpace wage growth. BOJ Governor Kazuo Ueda recently stated that rate hikes would resume if economic and price trends align with forecasts, though he warned of risks stemming from US tariffs. Meanwhile, investors assessed Japan’s political outlook following Sanae Takaichi’s victory to become the next prime minister. A firm supporter of “Abenomics” expansionary policies, her win bolstered expectations for substantial fiscal spending and continued monetary accommodation.