financetom
World
financetom
/
World
/
Japanese government bond yields rise as Gulf flare-up stokes inflation concerns
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Japanese government bond yields rise as Gulf flare-up stokes inflation concerns
Jun 7, 2026 6:26 PM

TOKYO, June 8 (Reuters) - Japanese government bond (JGB)

yields rose on Monday as inflation concerns and hawkish Bank of

Japan (BOJ) signals continued to weigh on sentiment.

Here are a few details:

* The yield on the 10-year JGB climbed 3.5

basis points (bps) to 2.7%, poised for its highest close since

late May. Yields move inversely to bond prices.

* Oil prices jumped after an Israeli attack on Beirut over

the weekend prompted Iran to direct a salvo of missiles at

Israeli targets.

* "Amid supply constraints on oil-related products,

corporate and consumer prices could deviate from their

traditional relationship with import prices rising

significantly," Ataru Okumura, a senior rate strategist at SMBC

Nikko Securities, said in a note.

* "If this were to lead to a rise in expected inflation

through wage increases starting next year, the Bank of Japan's

monetary policy management would become extremely difficult, and

a substantial premium would be added to the JGB yield curve."

* U.S. Treasury yields rose sharply on Friday after a

stronger-than-expected jobs report bolstered expectations of

Federal Reserve rate hikes.

* Domestically, expectations for a BOJ rate hike at its June

15-16 policy meeting have solidified.

* Data on Monday showed Japan's economy lost momentum in the

January-March quarter, as the Middle East conflict added to

headwinds.

* The yield on the 30-year JGB advanced 2 bps

to 3.910%, rising for a fourth straight session.

* The two-year yield, the one most sensitive

to Bank of Japan policy rates, and the five-year yield

both held steady.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved