Japanese government bond (JGB) yields rose on Monday as higher oil prices fuelled inflation concerns, while investors weighed the likelihood of a Bank of Japan interest-rate hike in September.
Here are a few details:
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The benchmark 10-year JGB yield rose 1.5 basis points (bps) to 2.810 percent. Yields move inversely to bond prices.
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The two-year yield, most sensitive to BOJ's policy, was up 1 bp at 1.615 percent, its highest level since May 1995.
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The five-year yield rose to as high as 2.09 percent, matching a record high marked last week, and was last up 1 bp to 2.085 percent.
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"Inflation fears grew after oil prices rose," said Miki Den, senior Japan rate strategist at SMBC Nikko Securities.
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Oil prices rose, supported by uncertainty over the reopening of the Strait of Hormuz, as Iran said a deal with Oman defining new shipping lanes was in its final stages but insisted the US must still meet other conditions.
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The yen has given up some intervention-driven gains, which also fuelled concerns about rising inflation, Den added.
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The Japanese currency was last down 0.27 percent against the US dollar at 158.195.
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The BOJ's case for a September rate hike strengthened after a growing chorus of policymakers argued for a more forceful response to mounting inflation risks, a summary of opinions at their July meeting showed on Monday.
Reuters
