Japan 10Y Yield Edges Higher Ahead of BOJ

2026-03-16 04:03 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield rose above 2.25% on Monday, reaching five-week highs ahead of an expected rate hold from the Bank of Japan amid heightened uncertainty over the Iran war’s impact on the domestic economy.

Last week, BOJ Governor Kazuo Ueda warned that a weak yen could amplify imported inflation as oil prices rise, potentially pressuring the central bank to accelerate policy normalization.

Ueda noted that the effect of exchange rates on inflation appears larger than in the past, giving them greater weight in policymakers’ decisions.

The Iran war and surging oil prices continued to weigh on Japan’s oil-importing economy, dampening growth prospects and raising inflation risks.

Meanwhile, Japanese Defense Minister Shinjiro Koizumi said the country currently has no plans to deploy warships to the Strait of Hormuz despite US pressure on other nations.



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