Japan's JGB Yields Surge with US Treasuries Amid Inflation Fears
The Japanese government bond market is seeing a rise in yields, mirroring the trend seen in US Treasury yields. The 10-year JGB yield climbed to around 2.93% on Thursday, reversing its two-week lows and tracking the increase in US Treasury yields.
The recent disappointment over the US Treasury Department's bond buyback announcement has contributed to this rise. Rising oil prices amid the escalating US-Iran conflict have also heightened inflation and interest rate hike concerns, lifting global bond yields.
In Japan, the Bank of Japan is expected to raise its policy rate to 1.25% next week, marking a significant increase in roughly 31 years. This decision aims to address the risk of inflation exceeding expectations amid higher crude oil prices and a weaker yen.