Global Market: Japan's benchmark bond yields extend gains as inflation, fiscal concerns weigh

Japan's benchmark 10-year JGB yield climbed 3 basis points to 2.675%, extending a recent upward move driven by inflation and fiscal concerns. Prime Minister Sanae Takaichi's administration is reportedly preparing a growth strategy targeting around 370 trillion yen (about $2.29 trillion) in combined public and private investment by 2040, adding to worries over fiscal expansion. Markets expect the Bank of Japan to continue policy normalisation after raising rates to 1%, even as May core inflation stayed below the 2% target for the fourth straight month.