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.
