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JGB yields climb after US-Iran tensions drive oil prices higher
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JGB yields climb after US-Iran tensions drive oil prices higher
Jun 10, 2026 6:44 PM

TOKYO, June 11 (Reuters) - Japanese government bond (JGB)

yields climbed on Thursday after fresh U.S. strikes on Iran

reignited inflation concerns and lifted oil prices.

Here are a few details:

* The benchmark 10-year JGB yield rose 1

basis point (bp) to 2.690%. Yields move inversely to bond

prices.

* "Higher crude prices amid concerns about escalating Middle

East tensions are likely to weigh on sentiment," said Keisuke

Tsuruta, a senior bond strategist at Mitsubishi UFJ Morgan

Stanley Securities, in a note.

* Oil prices edged higher by more than $2 a barrel on the

Iranian military's declaration that the critical energy

chokepoint, the Strait of Hormuz, was closed after the U.S.

launched additional strikes against Iran.

* Separately, the central bank said on Wednesday that Bank

of Japan Governor Kazuo Ueda has been hospitalised for medical

treatment and will miss the June 15-16 policy meeting.

* That is unlikely to affect next week's decision, with a

rate hike highly anticipated, but analysts said it will

complicate the BOJ's communication about what may come next.

* "There is some concern over what message the BOJ will send

at its June meeting without the governor, and the implications

this could have for its communication with markets," Tsuruta

said.

* Overnight, U.S. consumer inflation in May accelerated at

its fastest pace in three years, boosted by surging prices for

energy products amid the Middle East conflict, and giving more

ammunition for the U.S. Federal Reserve to keep interest rates

unchanged into 2027. U.S. Treasury yields also ended higher on

Wednesday on rising U.S.-Iran tensions.

* The 30-year yield added 2 bps to 3.870%. On

Wednesday, the Ministry of Finance sold about 600 billion yen

($3.74 billion) of 30-year JGBs. The auction's bid-to-cover

ratio, a measure of demand, declined to the lowest in a year.

* The five-year yield rose 0.5 bps to 1.940%.

($1 = 160.5000 yen)

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