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)