Bank of Japan Gov. Haruhiko Kuroda is starting to convince bond investors he can revive inflation without extra monetary easing.

The debt market's inflation expectations for the coming decade are starting to tick higher following a six-month slide, even after the central bank defied rising conjecture among analysts for more stimulus by leaving policy settings unchanged.

The yield curve suggests buyers have been unwinding bets that the BOJ will expand purchases of long-term debt, while a measure of market volatility declined to the lowest in more than a year.