Japan 10Y Yield Falls on US-Iran Deal Optimism

2026-04-14 02:44 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield declined to around 2.45% on Tuesday, pulling back from 28-year highs as oil prices eased on growing optimism that a US-Iran agreement could eventually be reached.

President Donald Trump said Tehran had reached out to Washington just hours after the US initiated a naval blockade of Iranian oil shipments in the Strait of Hormuz.

Iranian President Masoud Pezeshkian also stated that Iran is prepared to continue peace talks, provided they remain within the framework of international law.

Meanwhile, Bank of Japan Governor Kazuo Ueda emphasized on Monday the importance of monitoring the economic fallout from the Iran conflict, warning that higher oil prices could weigh on Japan’s growth outlook.

Markets are now pricing in around a 40% chance of a BOJ rate hike later this month, down from nearly 60% last week.



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Japan 10Y Yield Falls on US-Iran Deal Optimism
Japan’s 10-year government bond yield declined to around 2.45% on Tuesday, pulling back from 28-year highs as oil prices eased on growing optimism that a US-Iran agreement could eventually be reached. President Donald Trump said Tehran had reached out to Washington just hours after the US initiated a naval blockade of Iranian oil shipments in the Strait of Hormuz. Iranian President Masoud Pezeshkian also stated that Iran is prepared to continue peace talks, provided they remain within the framework of international law. Meanwhile, Bank of Japan Governor Kazuo Ueda emphasized on Monday the importance of monitoring the economic fallout from the Iran conflict, warning that higher oil prices could weigh on Japan’s growth outlook. Markets are now pricing in around a 40% chance of a BOJ rate hike later this month, down from nearly 60% last week.
2026-04-14
Japan 10Y Yield Hits Fresh 28-Year High
Japan’s 10-year government bond yield rose to around 2.48% on Monday, reaching its highest level since July 1997 as oil prices surged again after US-Iran peace talks in Islamabad over the weekend failed to produce a deal. President Donald Trump also announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran, raising the risk of further escalation in the global energy crisis. The prolonged conflict has clouded the outlook for Bank of Japan policy, with officials divided between those prioritizing rising inflation risks and those more concerned about downside risks to growth. A former BOJ official noted that the central bank’s typical response in periods of high uncertainty would be to wait and assess conditions. The BOJ is scheduled to hold its policy meeting on April 27-28. Meanwhile, Economy Minister Ryosei Akazawa said monetary policy could be used as a tool to curb inflation by strengthening the yen.
2026-04-13
Japan 10Y Bond Yield Hits 28-year High
Japan 10 Year Government Bond Yield increased to 2.48%, the highest since July 1997. Over the past 4 weeks, Japan 10Y Bond Yield gained 23.98 basis points, and in the last 12 months, it increased 114.42 basis points.
2026-04-13