TOKYO, March 13 (Reuters) - Yields of Japanese
government bonds (JGBs) rose on Friday, hit by a double blow
from higher crude oil prices and a weaker yen amid escalating
tensions in the Middle East, stoking inflation fears.
The benchmark 10-year JGB yield
rose 2.5 basis points to 2.205%, while the
five-year yield rose 2 bps to 1.645%. Yields move
inversely to bond prices.
"Rising expectations for higher crude oil prices and the
yen's weakness, against the backdrop of concerns that heightened
tensions in the Middle East will be prolonged, are likely to
weigh on the market," Kazuya Fujiwara, bond strategist in
Mitsubishi UFJ Morgan Stanley Securities, said in a note.
He added trading is expected to gradually turn directionless
after initial selling runs its course.
U.S. Treasury yields rose overnight over concerns about
resurgent inflation from the U.S.-Israeli war on Iran that could
keep U.S. interest rates higher for longer.
Other tenors were yet to be traded as of 0019 GMT.