Economic data is sluggish, and the yields on ultra-long-term Japanese government bonds are declining.

Jin10 data reported on August 29 that the yield on Japan’s ultra-long-term government bonds has fallen, due to weak retail and industrial output data increasing uncertainty about the long-term economic outlook against a backdrop of tariff concerns. Data released by the Japanese government on Friday showed that Japan’s industrial production fell more than expected month-on-month in July, reflecting the impact of the increase in U.S. tariffs. Retail sales in July rose by 0.3% year-on-year. Meanwhile, with inflation remaining high, market expectations for further interest rate hikes by the Central Bank of Japan continue.