Japan bond yields rise as oil gains add to inflation concerns
TLT•Key yield moves and market drivers
Here are a few details:
- The benchmark 10-year JGB yield JP10YTN=JBTC rose 1.5 basis points (bps) to 2.820%. Yields move inversely to bond prices.
- The 5-year yield JP5YTN=JBTC rose 1.5 bps to 2.100%, a record high. The 2-year yield JP2YTN=JBTC, the most sensitive to Bank of Japan policy rates, increased 2 bps to 1.63%, the highest since May 1995.
- Other tenors had yet to be traded, as of 0019 GMT.
- Iran's top security official said on Tuesday that the vital Strait of Hormuz shipping route will remain closed unless the U.S. accepts Iran's conditions to end the war: the release of Iran's frozen assets and an end to wars throughout the region, including in Lebanon and Gaza.
- The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping on Tuesday. Brent crude futures LCOc1 rose $1.19, or 1.4%, to settle at $88.91 a barrel, while U.S. crude CLc1 rose 1.3% to $83.20. O/R
JGB yields rise on oil-driven inflation concerns
TOKYO, Aug. 12 (Reuters) - Japanese government bond (JGB) yields rose on Wednesday as crude oil prices climbed on renewed uncertainty over the Middle East, adding to inflation concerns, while investors awaited key U.S. inflation data for interest rate clues.
Strategists and traders watch U.S. inflation data and BOJ rate odds
"The external conditions are likely to be a headwind," given recent rises in U.S. long-term yields, crude oil futures and the dollar against the yen, said Keisuke Tsuruta, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities.
The U.S. Consumer Price Index data, due on Wednesday, could determine the path of interest rates.
