Japan 10-year JGB yield hits 2.89% amid Middle East tensions
Japanese government bonds are seeing higher yields this Monday, thanks to rising inflation fears and ongoing tensions in the Middle East.
The 10-year JGB yield bumped up to 2.89%, signaling that investors are getting more cautious.
Everyone's now waiting for a statement from US Treasury Secretary Scott Bessent, who might announce economic sanctions on Iran's trade partners, something that could shake up global markets even more.
Japan requests 130 trillion yen budget
Japan's ministries just asked for a record-setting budget of over 130 trillion yen ($818.2 billion) for next year, which is making investors even more uneasy about the country's finances.
Longer-term bonds, like the 30-year JGB, are feeling the pressure and their yields have edged up too.
As market analyst at Mizuho Securities Toshiki Kamioka notes, traders are staying careful with ultra-long-term investments while keeping an eye on financial risks and the ultra-long-term zone, which is sensitive to fiscal developments.