Japan’s 10-year government bond yield fell to around 2.17% on Tuesday after reaching 2.23% in the previous session, as falling energy prices eased pressure on the country’s oil-importing economy. Local yields also retreated as lower oil costs reduced fears of resurgent inflation, lowering the likelihood of near-term rate hikes by major central banks. Those moves came as US President Donald Trump said the US military operation in Iran is nearing its conclusion and unveiled plans to keep oil prices in check. In Japan, fourth-quarter GDP growth was revised upward to 0.3% from an initial 0.1%, supported by strong domestic demand. Earlier data also showed real wages rose for the first time in 13 months, reinforcing the Bank of Japan’s case to continue normalizing monetary policy and giving the government flexibility to pursue key policy objectives.
