Japan’s 10-year government bond yield held steady above 1.18% on Friday, remaining at its highest levels since May 2011, despite ongoing uncertainty surrounding the timing of interest rate hikes by the Bank of Japan. Japan’s Economy Minister Ryosei Akazawa stated that the economy is at a “critical stage” in overcoming the public’s deflationary mindset but offered no clear guidance on when the BOJ might raise rates. On the data front, household spending in Japan declined by 0.4% year-on-year in November, while household income rose by 0.7%. Meanwhile, the Finance Ministry’s ¥900 billion auction of 30-year government bonds this week contributed to pushing JGB yields higher. Japanese yields also tracked the rise in US Treasury yields, as investors adjusted expectations for fewer Federal Reserve rate cuts this year.