Japanese bonds caught in the global sell-off wave, 10-year yield rises to 2.8%

Golden Financial reports that on May 18th, during the Tokyo market’s early trading session, Japanese government bond prices fell amid a global sell-off of government bonds. Due to the lack of progress in the US-Iran peace agreement, concerns about further rises in energy prices have intensified. Bank of America Securities Japan analyst Tomonobu Yamashita stated in a research report, “There seems to be no factor in the short term that can suppress the rise in yields.” He also pointed out, “Supply and demand imbalances are also pushing up Japanese bond yields.” “Media reports indicate that the Japanese government is considering drafting its first supplementary budget for fiscal year 2026.” The 10-year Japanese government bond yield temporarily rose by 10 basis points during the session, reaching 2.8%, the highest level since October 1996. (Jin10)