Japan 10Y Yield Hits Fresh 28-Year High

Japan’s 10-year government bond yield rose to around 2.48% on Monday, reaching its highest level since July 1997 as oil prices surged again after US-Iran peace talks in Islamabad over the weekend failed to produce a deal. President Donald Trump also announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran, raising the risk of further escalation in the global energy crisis. The prolonged conflict has clouded the outlook for Bank of Japan policy, with officials divided between those prioritizing rising inflation risks and those more concerned about downside risks to growth. A former BOJ official noted that the central bank’s typical response in periods of high uncertainty would be to wait and assess conditions. The BOJ is scheduled to hold its policy meeting on April 27-28. Meanwhile, Economy Minister Ryosei Akazawa said monetary policy could be used as a tool to curb inflation by strengthening the yen.
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