Japan 10Y Yield Falls Ahead of BOJ Decision

2026-03-18 04:03 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield fell to around 2.23% on Wednesday, declining for a second consecutive session as investors awaited the upcoming Bank of Japan policy decision.

The central bank is widely expected to keep interest rates steady while assessing the impact of the Middle East conflict on the domestic economy.

However, the BOJ could signal a hawkish bias as a weak yen and elevated oil prices from the Iran war fuel inflationary pressures in Japan, which depends heavily on Middle East oil.

Meanwhile, Prime Minister Sanae Takaichi is set to meet US President Donald Trump this week, navigating a diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz before retracting the demand.

Data also showed Japanese exports rose 4.2% in February year-on-year, surpassing expectations of 1.6% but slowing sharply from January’s 16.8% jump.



News Stream
Japan 10Y Yield Falls Ahead of BOJ Decision
Japan’s 10-year government bond yield fell to around 2.23% on Wednesday, declining for a second consecutive session as investors awaited the upcoming Bank of Japan policy decision. The central bank is widely expected to keep interest rates steady while assessing the impact of the Middle East conflict on the domestic economy. However, the BOJ could signal a hawkish bias as a weak yen and elevated oil prices from the Iran war fuel inflationary pressures in Japan, which depends heavily on Middle East oil. Meanwhile, Prime Minister Sanae Takaichi is set to meet US President Donald Trump this week, navigating a diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz before retracting the demand. Data also showed Japanese exports rose 4.2% in February year-on-year, surpassing expectations of 1.6% but slowing sharply from January’s 16.8% jump.
2026-03-18
Japan 10Y Yield Holds Steady
Japan’s 10-year government bond yield remained around 2.27% on Tuesday after the latest 20-year JGB sale saw strong demand, as investor appetite stayed resilient despite rising oil prices fueling inflation concerns. Japan’s oil-import-dependent economy has faced pressure from surging energy costs that threatened stagflation. Meanwhile, Bank of Japan Governor Kazuo Ueda said underlying inflation is gradually moving toward the 2% target. The central bank is widely expected to keep interest rates unchanged this week amid heightened uncertainty over the Iran war’s impact on the domestic economy. Japan has so far rejected US President Donald Trump’s call to send warships to escort oil tankers through the Strait of Hormuz, though some market participants are speculating on a possible BOJ rate hike in April.
2026-03-17
Japan 10Y Yield Edges Higher Ahead of BOJ
Japan’s 10-year government bond yield rose above 2.25% on Monday, reaching five-week highs ahead of an expected rate hold from the Bank of Japan amid heightened uncertainty over the Iran war’s impact on the domestic economy. Last week, BOJ Governor Kazuo Ueda warned that a weak yen could amplify imported inflation as oil prices rise, potentially pressuring the central bank to accelerate policy normalization. Ueda noted that the effect of exchange rates on inflation appears larger than in the past, giving them greater weight in policymakers’ decisions. The Iran war and surging oil prices continued to weigh on Japan’s oil-importing economy, dampening growth prospects and raising inflation risks. Meanwhile, Japanese Defense Minister Shinjiro Koizumi said the country currently has no plans to deploy warships to the Strait of Hormuz despite US pressure on other nations.
2026-03-16