Commodities
Japanese Yields Climb Amid Escalating US-Iran Tensions
The long-term yields on Japanese government bonds (JGBs) have continued to rise, reaching a high of 2.88% on January 21st in the afternoon session.
The increase is attributed to heightened concerns over escalating tensions between the United States and Iran, which has led to increased buying of safe-haven assets such as the US dollar.
Crude oil prices have remained elevated following President Trump's statement that he would impose large-scale economic sanctions on Iran.
The combination of higher crude oil prices and a weaker yen is expected to contribute to higher import prices in Japan, potentially amplifying domestic inflationary pressure.