JGB yields edge higher amid fiscal, inflation worries

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%.