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Japan bond yields rise as oil gains add to inflation concerns
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Japan bond yields rise as oil gains add to inflation concerns
Aug 11, 2026 5:43 PM

TOKYO, Aug 12 (Reuters) - Japanese government bond (JGB)

yields rose on Wednesday as crude oil prices climbed on renewed

uncertainty over the Middle East, adding to inflation concerns,

while investors awaited key U.S. inflation data for interest

rate clues.

Here are a few details:

* The benchmark 10-year JGB yield rose 1.5

basis points (bps) to 2.820%. Yields move inversely to bond

prices.

* The 5-year yield rose 1.5 bps to 2.100%, a

record high. The 2-year yield, the most sensitive

to Bank of Japan policy rates, increased 2 bps to 1.63%, the

highest since May 1995.

* Other tenors had yet to be traded, as of 0019 GMT.

* Iran's top security official said on Tuesday that the

vital Strait of Hormuz shipping route will remain closed unless

the U.S. accepts Iran's conditions to end the war: the release

of Iran's frozen assets and an end to wars throughout the

region, including in Lebanon and Gaza.

* The United States and Yemen's Iran-aligned Houthis

reported separate attacks on shipping on Tuesday. Brent crude

futures rose $1.19, or 1.4%, to settle at $88.91 a

barrel, while U.S. crude rose 1.3% to $83.20.

* "The external conditions are likely to be a headwind,"

given recent rises in U.S. long-term yields, crude oil futures

and the dollar against the yen, said Keisuke Tsuruta, senior

bond strategist at Mitsubishi UFJ Morgan Stanley Securities.

* The U.S. Consumer Price Index data, due on Wednesday,

could determine the path of interest rates.

* Traders are also increasingly pricing in the possibility

of another BOJ rate hike, with Tokyo Tanshi data showing a 66%

chance of a move in September as of Monday afternoon.

(Reporting by Satoshi Sugiyama; Editing by Subhranshu Sahu)

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