Japanese government bonds held steady in morning Tokyo trading as investors tracked developments in the Middle East. The 10-year JGB yield remained unchanged at 2.395%, reflecting a cautious stance among bond market participants awaiting clarity on U.S.-Iran negotiations.

Bond markets find themselves in an uncomfortable holding pattern, according to ING's Economic and Financial Analysis Division. Traders are essentially paused, waiting for the U.S. and Iran to reach some form of agreement that could shift global risk sentiment and alter demand for safe-haven assets like Japanese sovereign debt.

The Bank of Japan may provide a backstop through planned outright purchases across five market sectors today. These operations include sovereign securities with maturities exceeding 10 years and extending up to 25 years, a move that could help anchor longer-term borrowing costs for Japan's government.