Japanese government bond yields hit multi-week lows as traders weigh Middle East situation and central bank policy outlook.

Japanese government bond yields fell to multi-week lows on Thursday amid thin trading. Traders are weighing geopolitical and inflation risks while keeping an eye on next week's Bank of Japan meeting. In recent days, Japanese government bonds have benefited from safe-haven inflows. The market is closely watching developments in the Middle East conflict, France's fiscal deficit and street protests, as well as stock market volatility driven by corporate earnings and AI-related news. The benchmark 10-year JGB yield fell 1 basis point to 2.88%, its lowest level since September 9. The five-year JGB yield dropped 1.5 basis points to 2.285%, the lowest since September 18. The 30-year JGB yield fell 2.5 basis points to 3.895%, the lowest since August 6. The 40-year JGB yield declined 3.5 basis points to 4.015%.