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.