Japan's 10-Year Bond Yield Slips as Oil Prices Tumble

Japan's 10-year government bond yield fell to around 2.82% on Wednesday, retreating from its three-week high.

The decline came as reports emerged of an imminent interim agreement between the US and Iran to reopen the Strait of Hormuz, causing oil prices to plummet.

This sent inflation concerns lower, easing pressure for aggressive monetary tightening.

However, Japanese bond yields remained supported by growing expectations of another Bank of Japan interest rate hike, despite last week's unchanged policy rate at 1%.