Japanese government bond (JGB) yields ticked higher on Monday as continued uncertainty in the Middle East stoked inflation worries, while a report of record budget requests heightened fiscal concerns.
Here are a few details:
The benchmark 10-year JGB yield rose 1.5 basis points (bps) to 2.89% at 0423 GMT. Yields rise when prices fall.
Investors are awaiting U.S. Treasury Secretary Scott Bessent's press conference at 1700 GMT amid promises of economic sanctions on Iran's trade partners.
Iran, in turn, vowed to shut down all oil exports from the Gulf "if the economic war continues."
Meanwhile, JGB investors are watching for details of budget submissions from Japanese ministries, after Kyodo reported combined requests for next fiscal year will exceed 130 trillion yen ($818.2 billion) for the first time.
"Financial risks are likely to be on traders' minds for the time being, especially in the ultra-long-term zone, which is sensitive to fiscal developments," said Toshiki Kamioka, market analyst at Mizuho Securities.
The 30-year JGB yield rose 1 bp to 4.075%, while the 20-year yield was flat at 3.76%.
The 2-year yield was unchanged at 1.675%; 5-year yields advanced 0.5 bp to 2.125%.
