With strong pump prospects for salaries in Japan, the yield curve of Japanese government bonds is steepening

The yield curve of Japanese government bonds is steepening against the backdrop of strong pump prospects for Japanese wages. In a research report by two economists from Barclays’ FICC Research, they stated that the Japanese Trade Union Confederation released the survey results of the wage increase demands from union members before the 2025 spring wage negotiations on Thursday. Economists pointed out that the average of the overall demands is 6.09%, exceeding 6% for the first time since 1993. Economists expect that the next interest rate hike by the Central Bank of Japan will be in July, which they believe is favorable for the Central Bank of Japan.