---
title: "Japan 10Y Yield Slips as Oil Retreats"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287148812.md"
description: "Japan’s 10-year government bond yield fell to 2.77% as oil prices declined, easing pressure on the economy. Optimism over US-Iran peace talks and a 14.8% rise in Japanese exports in April contributed to this shift. Additionally, Japan's economy showed stronger-than-expected growth in Q1, raising expectations for an interest rate hike by the Bank of Japan. However, bonds remain under pressure due to calls for a supplementary budget to tackle rising commodity prices."
datetime: "2026-05-21T02:35:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287148812.md)
  - [en](https://longbridge.com/en/news/287148812.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287148812.md)
---

# Japan 10Y Yield Slips as Oil Retreats

Japan’s 10-year government bond yield slipped to around 2.77% on Thursday, retreating from 30-year highs as falling oil prices eased pressure on Japan’s import-dependent economy amid growing optimism over a potential peace agreement between the US and Iran.

President Donald Trump said the US was in the final stages of negotiations with Iran, fueling expectations that the strategically important Strait of Hormuz could soon reopen.

On the domestic front, data showed Japanese exports rose 14.8% in April, surpassing forecasts on the back of strong demand from China, the US, ASEAN nations and the European Union.

Earlier data this week also indicated that Japan’s economy expanded more than expected in the first quarter, reinforcing expectations of a near-term interest rate hike from the Bank of Japan.

Meanwhile, Japanese government bonds remained under pressure after Prime Minister Sanae Takaichi urged the finance ministry to prepare a supplementary budget to address rising commodity prices.

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