Japanese government bond futures reversed earlier gains in early trading on the 7th, with the benchmark September JGB futures contract opening at 127.07 yen, down 28 sen from the previous day, as selling pressure dominated from the start. The move tracked a rise in U.S. long-term interest rates after weekly initial jobless claims came in at 199,000 on the 6th, below market expectations, reinforcing views that the Federal Reserve will not move quickly to cut rates and pushing the 10-year U.S. Treasury yield to 4.68%, up 0.07 percentage points. Higher WTI (West Texas Intermediate) crude oil futures, driven by uncertainty over access to the Strait of Hormuz, added to pressure by lifting inflation expectations through fuel and logistics costs. Investors are also watching how U.S. rates and oil prices feed into Bank of Japan policy expectations, with domestic wage growth and service price trends shaping views on when the BOJ might deliver additional rate hikes. Market participants said the immediate focus is on further U.S. economic data and crude oil moves, which could keep bond-market volatility elevated.