0842 GMT - A potential drop in WTI crude futures to $80 would push the 10-year JGB yield down to around 2.60%, says Daiwa Securities strategist Shun Otani. "A ceasefire agreement that includes the reopening of the Strait of Hormuz would ease inflation fears and be positive for the JGB market, with yields expected to drop by around 10 to 20 basis points from current levels," he says. "On the other hand, domestic anxieties about fiscal sustainability and monetary policy falling behind the curve remain significant in Japan, meaning that a transition into a full-fledged yield-declining phase depends heavily on the government's stance," he adds. The 10-year JGB yield was last down 7.0 bps at 2.69%. (megumi.fujikawa@wsj.com)

(END) Dow Jones Newswires

May 25, 2026 04:42 ET (08:42 GMT)

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