Dollar-yen traded nearly unchanged around 157.40 in Tokyo on Tuesday the 22nd, ranging from 157.29 to 157.56 in thin post-holiday trading, while Germany’s 10-year Bund yield rose to 3.47% and the euro fell to $1.145, its lowest level since late July. Markets assessed Germany’s political uncertainty after Alternative for Germany became the largest party in Mecklenburg-Vorpommern and the governing Christian Democratic Union won no seats, as well as pressure on Chancellor Friedrich Merz and France’s budget deficit above 5% of GDP. Brent crude recovered after reaching its lowest level since September 10, supporting concerns about energy-driven inflation, higher interest rates and multi-year-high Eurozone bond yields. Dollar-yen remained supported by U.S. long-term yields and the gap between Japanese and U.S. monetary policy, while traders also monitored possible U.S.-China trade talks and Bank of Japan intervention risks.