Japan's labor cash income data is unexpectedly weak, which will increase the yen's bearish bet, as it will make it more difficult for the Bank of Japan to raise interest rates as soon as possible. Japan's real wages in November recorded the biggest drop since January. According to government data, real wages in Japan fell 2.8% year on year after adjustment for inflation in November. According to market analysis, with salary data falling far short of expectations, gradually raising interest rates to a neutral range of 1% or more seems to be an unattainable goal. In December of last year, Japanese politicians had to go through extensive lobbying to support a 25 basis point rate hike, and this report clearly failed to prompt them to support the Bank of Japan's interest rate hike again. At the same time, the data won't have much impact on today's 30-year Japanese treasury bond auctions. After all, the long-term end of the treasury bond yield curve has always been unpopular and has failed.

Japan's labor cash income data is unexpectedly weak, which will increase the yen's bearish bet, as it will make it more difficult for the Bank of Japan to raise interest rates as soon as possible. Japan's real wages in November recorded the biggest drop since January. According to government data, real wages in Japan fell 2.8% year on year after adjustment for inflation in November. According to market analysis, with salary data falling far short of expectations, gradually raising interest rates to a neutral range of 1% or more seems to be an unattainable goal. In December of last year, Japanese politicians had to go through extensive lobbying to support a 25 basis point rate hike, and this report clearly failed to prompt them to support the Bank of Japan's interest rate hike again. At the same time, the data won't have much impact on today's 30-year Japanese treasury bond auctions. After all, the long-term end of the treasury bond yield curve has always been unpopular and has failed.