Japanese government bond yields eased after strong demand at two-year and 40-year auctions reduced concerns about rising yields. The two-year JGB yield fell 1 basis point to 1.950% as investors assessed the Finance Ministry’s roughly 2.8 trillion yen auction, while the 10-year yield slipped to around 3.08% after an earlier report showed it at 3.095%, up 0.010%. Demand for the 40-year issue was the strongest since 2020, and two-year demand exceeded its 12-month average. The pullback came despite expectations of further Bank of Japan rate increases, while falling oil prices and improving Middle East energy flows also reduced inflation risks.