Global Market: Japanese bond yields climb as oil surge and fiscal concerns weigh on market

Japanese government bond yields climbed across tenors, with the benchmark 10-year JGB yield up 0.5 basis points to 2.690 percent and the 40-year yield rising 6 basis points to 3.815 percent, driven by oil price gains on US strikes on Iranian military installations and lingering fiscal concerns. A Bank of Japan survey showed over 90 percent of Japanese households expect prices to rise over the next year, reinforcing expectations of further rate hikes. The move came despite softer US PPI data pulling down Treasury yields, highlighting a divergence between US and Japanese rate trajectories.