US Treasury Secretary Bessent says he believes that Japan is taking the correct steps for its economy. G20 ministers are targeting higher growth, unclear if the necessary steps will be taken for this though. Expects alignment on the Iran situation.

• Imbalances created by some nations has reduced growth in other places.

Comments of this kind from a US Treasury Secretary on Japan's policy course are a recurring feature of G20 gatherings and have historically mattered less for their content than for what they signal about Washington's posture on the yen and Japanese rate normalisation. Public endorsement of Tokyo's steps has tended to accompany periods in which the US is comfortable with gradual BoJ tightening and a firmer yen, whereas open talk of imbalances created by some nations echoes the longstanding US framing that surplus economies should do more to support domestic demand, a theme that resurfaces whenever trade and currency friction is in the background. For JGBs and the yen the operative channel is whether such remarks are read as tolerance for further Japanese rate rises, since US acquiescence has in past episodes removed a political constraint on BoJ action. The Iran alignment reference is boilerplate of the sort communiques typically carry and rarely moves anything by itself. The follow-ons worth noting are any coordinated language in the closing communique on exchange rates and imbalances, and whether Japanese officials echo or qualify the endorsement. As standing commentary rather than policy action, the signal is directional and low-grade.