JGBs fell early in the Tokyo session, mirroring overnight declines in U.S. Treasurys. Both markets tend to move in tandem, and the latest drop reflects this synchronicity.

The decline is also likely influenced by the recent rise in crude oil prices, which could raise inflation in Japan and prompt a quicker pace of BOJ rate increases. Meanwhile, the ongoing net supply of JGBs remains high and the Japanese economy is robust overall, Citi Research’s Tomohisa Fujiki notes. “We see no particular reason to aggressively buy bonds,” the rates strategist adds.

The 10‑year JGB yield rose 2 basis points to 2.725%, underscoring the parallel movement between Japanese and U.S. debt markets. Market participants now watch oil and BOJ policy for the next shift.

Overall, the early Tokyo session highlights how global bond markets are intertwined, with shifts in one currency often echoing in another.