Japanese government bond yields jumped sharply Thursday, with 10 year JGB yields hitting a 25 year high. Investors blamed President Trump’s comments about the continuing Iran conflict, expectations of a Bank of Japan rate hike, a weaker yen, and higher oil prices that raise inflation fears and drive demands for higher yields.
Japan’s benchmark government bond yield has jumped to a 29-year peak as investors price higher inflation risk. Escalating oil prices follow the collapse of US-Iran peace talks, with concerns rising after a planned US Navy blockade near the Strait of Hormuz. Markets now watch the Bank of Japan closely for hints of potential interest rate hikes this month.
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