JGB Yields Edge Higher Amid Fiscal and Inflation Worries in Japan

Japanese government bond yields rose on Monday as uncertainty in the Middle East fueled inflation worries and a report of record budget requests heightened fiscal concerns.

The benchmark 10-year JGB yield increased by 1.5 basis points to 2.89% at 0423 GMT, while investors await U.S. Treasury Secretary Scott Bessent's press conference amid promises of economic sanctions on Iran's trade partners.

Iran has vowed to shut down all oil exports from the Gulf if the economic war continues.

Market analysts are closely watching budget submissions from Japanese ministries, with combined requests for the next fiscal year expected to exceed 130 trillion yen ($818.2 billion) for the first time.