Japan 10-Year Yield Falls to 1-Month Low
2026-06-15 02:27
By
Jam Kaimo Samonte
1 min. read
Japan’s 10-year government bond yield slipped to around 2.57% on Monday, marking a one-month low after the US and Iran reached a peace agreement that would restore access through the Strait of Hormuz.
The announcement drove oil prices down to a two-month low, easing inflation concerns and lowering cost pressures for major energy-importing economies such as Japan.
Markets are also positioning ahead of the Bank of Japan policy decision, where officials are widely expected to raise interest rates to curb inflation and support the yen.
Tthe yen remained under pressure as traders increased short positions amid persistent carry trade activity, where investors borrow in yen to fund higher-yielding assets abroad.
These moves reflect the still-wide interest rate differential with the US and continue to overshadow the BOJ’s gradual tightening cycle and repeated currency intervention efforts from Tokyo.