Bond Yields Surge on Inflation Fears as JGBs Hit 3% for First Time Since 1996

Bond yields continued their ascent on inflationary concerns, with key indicators hitting multi-decade highs. The EU mid-market update revealed that 10-year Japanese government bonds (JGBs) reached 3% for the first time since 1996.

The upward trend in bond yields is attributed to growing inflation worries, which are fueled by rising energy costs and a prolonged Iran conflict. This development has significant implications for global markets, with the European Central Bank (ECB) facing increased pressure to take action on inflation.

In related news, Micron's Taiwan labor dispute is gaining attention due to its potential impact on the memory supply chain. The dispute involves nearly 10,000 workers representing 80% of surveyed members backing possible strike action unless bonuses are replaced with recurring profit-sharing models.