Japan’s 10-year government bond yield declined to around 2.75% on Thursday, reaching its lowest level since late July amid a broad global rally in equities and bonds, while falling oil prices eased inflationary concerns. The market movements followed Democratic victories in the US midterm elections, which reduced political uncertainty and lowered the likelihood of President Trump resuming military strikes against Iran. On the domestic front, minutes from the Bank of Japan’s September meeting strengthened expectations of further interest rate increases. One board member suggested that the central bank could accelerate monetary tightening as it assessed the effects of Middle East developments, rising AI-related demand, and foreign exchange movements. The BOJ raised its policy rate to a 31-year high of 1.25% in September before keeping it unchanged in October. However, the central bank indicated that underlying inflation had reached its 2% target.