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Benchmark JGB yields rise for third day on inflation, fiscal concerns
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Benchmark JGB yields rise for third day on inflation, fiscal concerns
Jun 21, 2026 6:00 PM

TOKYO, June 22 (Reuters) - Benchmark Japanese government

bond (JGB) yields extended gains for a third day on Monday, as

inflation and fiscal concerns simmered.

Here are a few details:

* The 10-year JGB yield climbed 3 basis

points to 2.675%. Yields move inversely to bond prices.

* Japan Prime Minister Sanae Takaichi's administration plans

to set a target of about 370 trillion yen ($2.29 trillion) in

public and private investment by 2040 as part of a new growth

strategy, the Nikkei reported on Friday.

* "Fiscal expansion could lead to a further upward spike in

inflation, which, in turn, could trigger a rise in interest

rates and further intensify fiscal concerns, creating a vicious

cycle," Ataru Okumura, a senior rate strategist at SMBC Nikko

Securities, said in a note.

* Markets are growing more certain that the Bank of Japan

will continue raising rates after its recent hike to 1%, as

policymakers focus on inflation risks tied to energy costs and a

weak yen.

* Data on Friday showed Japan's annual core inflation stayed

below the central bank's 2% target for a fourth consecutive

month in May.

* "The view is that this data print is unlikely to derail

the Bank of Japan's gradual tightening bias that they're

delivering," said Skye Masters, head of markets research at the

National Australia Bank.

($1 = 161.2800 yen)

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