Japan’s 10-year government bond yield fell to around 2.67% on Tuesday, pulling back from a two-week high as oil prices declined after Iran and Israel agreed to halt attacks against each other, boosting hopes that peace negotiations could move forward. The easing in oil prices helped reduce concerns about energy-driven inflation and the need for higher interest rates. Even so, the Bank of Japan is still widely expected to raise interest rates later this month as policymakers contend with persistent inflationary pressures linked to elevated energy costs. Reports also indicated that the BOJ will review its bond tapering plan and is likely to further reduce its monthly bond purchases. Meanwhile, investors are awaiting Wednesday’s auction of 30-year Japanese government bonds to gauge demand in a high-yield environment.