USD/JPY slid by ¥1 in minutes after Japan’s 10-year and 20-year government bond yields fell 10 basis points on the day. Japan’s producer price index unexpectedly accelerated to 7.1%, the highest in months, adding to market concerns about pressure on the Bank of Japan. A Japanese official said the government wants GPIF and other major domestic funds to shift more money back into Japanese assets, a move that could encourage capital repatriation and dampen yen depreciation momentum. The yen is hovering near 40-year lows, while investors see the BOJ’s policy options as increasingly limited.