Japan 10-Year Yield Falls for Second Session

2026-08-06 02:48 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield eased to around 2.78% on Thursday, falling for a second consecutive session as lower oil prices following the partial reopening of the Strait of Hormuz reduced concerns over inflation and the outlook for interest rates.

Iran and Oman reached an agreement to establish a shipping corridor through the strait, fueling expectations of stronger energy flows from the Middle East.

Even so, Japanese bond yields continued to find support from growing expectations that the Bank of Japan will raise interest rates again.

Minutes from the July policy meeting revealed that several board members expect consumer inflation to accelerate notably in the second half of the current fiscal year as companies press ahead with broad-based price increases across a wide range of goods.

Meanwhile, the latest sale of 30-year Japanese bonds drew firm demand, with the bid-to-cover ratio at Thursday’s auction posting at 3.86 compared with 4.55 at the previous sale.



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Japan 10-Year Yield Falls for Second Session
Japan’s 10-year government bond yield eased to around 2.78% on Thursday, falling for a second consecutive session as lower oil prices following the partial reopening of the Strait of Hormuz reduced concerns over inflation and the outlook for interest rates. Iran and Oman reached an agreement to establish a shipping corridor through the strait, fueling expectations of stronger energy flows from the Middle East. Even so, Japanese bond yields continued to find support from growing expectations that the Bank of Japan will raise interest rates again. Minutes from the July policy meeting revealed that several board members expect consumer inflation to accelerate notably in the second half of the current fiscal year as companies press ahead with broad-based price increases across a wide range of goods. Meanwhile, the latest sale of 30-year Japanese bonds drew firm demand, with the bid-to-cover ratio at Thursday’s auction posting at 3.86 compared with 4.55 at the previous sale.
2026-08-06
Japan 10Y Yield Slips on Falling Oil Prices
Japan’s 10-year government bond yield eased to around 2.82% on Wednesday, retreating from a three-week high as reports of an imminent interim agreement between the US and Iran to reopen the Strait of Hormuz sent oil prices sharply lower, easing concerns over inflation and the need for aggressive monetary tightening. Despite the pullback, Japanese bond yields remained supported by growing expectations of another Bank of Japan interest rate hike. Last week, the BOJ left its policy rate unchanged at 1%, although policymakers acknowledged upside inflation risks stemming from demand-driven price pressures linked to the Middle East conflict. Minutes from the July policy meeting also showed that several board members expect consumer inflation to receive a significant boost in the second half of the current fiscal year as companies move ahead with price increases across a broad range of goods.
2026-08-05
Japan 10Y Yield Eases on Lower Oil Prices
Japan’s 10-year government bond yield edged down to around 2.8% on Tuesday as lower oil prices helped ease inflation concerns, reducing the urgency for more aggressive monetary tightening. The move followed President Donald Trump’s proposal for a new round of peace talks with Iran as efforts continued to secure the swift reopening of the Strait of Hormuz. Despite the decline, Japanese bond yields remained supported by growing expectations of another Bank of Japan interest rate hike. Last week, the BOJ kept its policy rate unchanged at 1%, in line with expectations, after delivering a 25-basis-point increase in June. Policymakers nevertheless acknowledged upside inflation risks driven by demand-related price pressures linked to the conflict in the Middle East. BOJ Governor Kazuo Ueda also said it is "more necessary than ever" to remain vigilant about the risk of higher inflation given its potential adverse effects on the economy.
2026-08-04