Japan’s 10-year government bond yield climbed to around 2.4% on Thursday, reversing the previous session’s decline as uncertainty over the US-Iran ceasefire kept investors cautious about inflation risks. A senior Iranian official said elements of the ceasefire proposal had already been breached following fresh Israeli strikes on Lebanon, while Tehran continued to largely block the Strait of Hormuz. On Wednesday, Japanese yields had fallen after the ceasefire announcement, reflecting the country’s sensitivity to Middle East oil supply disruptions. Meanwhile, a former Bank of Japan official suggested the central bank is likely to raise its policy rate this month to avoid lagging in inflation control. Markets are now closely watching for signals from BOJ Governor Kazuo Ueda ahead of the April 28 policy announcement, similar to the guidance he provided in December before the last rate hike.
