Japan 10-Year Yield Rises on Oil Rally

Japan’s 10-year government bond yield climbed to around 2.73% on Friday, rising for a second consecutive session as oil prices surged this week amid the escalating conflict between the US and Iran, effectively unraveling the interim peace agreement. With Japan heavily dependent on energy imports from the Middle East, the country remains especially vulnerable to supply disruptions. The benchmark yield also hovered near its highest level in 30 years amid growing concerns over Japan’s fiscal expansion plans and persistent inflationary pressures. The government recently unveiled a draft roadmap outlining more than ¥370 trillion in public and private investment through fiscal 2040 across 17 strategic sectors prioritized by the Takaichi administration. Meanwhile, a recent report showed that Japan has no immediate plans to revise the asset allocation of its state pension funds, dampening expectations for near-term support for domestic financial markets


