Japanese government bond yields hit July lows as tech selloff fuels safe-haven demand

Japanese government bond yields plunged across the curve on Friday, with the benchmark 10-year yield falling to 2.627%, its lowest since June and its steepest single-day drop since July, as investors fled to safe-haven sovereign debt. The rush followed a brutal Wall Street session where the Nasdaq plunged 5.52% to 24,315.00 points, confirming a technical correction, while the S&P 500 fell 4.36% and the Dow slid 3.44%. The sell-off was triggered by a reassessment of the AI boom after Tuesday's Democratic sweep of Congress, raising fears of antitrust enforcement and environmental oversight on data centers. The equity shock reversed the domestic monetary narrative, as Tokyo's Nikkei 225 fell 6.4%. Just a day earlier, yields had been anchored by hawkish Bank of Japan minutes suggesting policymakers could raise rates above the current 31-year high of 1.25%.