Japan bond yields rose, with the 5-year hitting a record and the 2-year its highest since 1995, as oil gains on Middle East risk add to inflation concerns. Rising yields haven’t yet supported the yen, with US CPI due Wednesday the next test.

The move higher in JGB yields, led by a record high on the five year and the highest two year print since May 1995, reflects markets pricing a firmer case for further Bank of Japan tightening as imported inflation risk builds via crude. That the two year, the tenor most sensitive to BOJ policy, is leading the move fits with Tokyo Tanshi data showing traders now assign roughly two in three odds to a September hike.

https://investinglive.com/news/japan-bond-yields-rise-as-oil-gains-stoke-fresh-inflation-concerns/