Japanese government bonds rise, following the trend of U.S. government bonds.

Japanese government bonds rose in early trading in the Tokyo market, following the overnight price increase in US government bonds. The trends of Japanese and US government bonds often move in sync. Additionally, comments made overnight by US President Trump regarding the progress of the Iran war being faster than expected and ending soon may have led to a drop in oil prices. Market observers suggest that the decline in oil prices could alleviate concerns about accelerating inflation in Japan and the Bank of Japan's hastening pace of interest rate hikes. The yield on 10-year Japanese government bonds fell by 3.5 basis points to 2.150%. The yield on 5-year Japanese government bonds fell by 2.0 basis points to 1.600%.