JGBs fell in early Tokyo trade, mirroring overnight declines in U.S. Treasurys. The 10-year JGB yield rose 2.5 bps to 2.295%, reflecting heightened sensitivity to external shocks. Analysts at Mitsubishi UFJ Morgan Stanley Securities noted the JGB market will swing based on Middle East headlines, crude oil prices, and forex dynamics.

WTI crude oil futures hovered near $93 per barrel, while the dollar traded at 159 yen, both elevated from Thursday’s Tokyo session. These factors will likely drive JGB sales volatility, they added.