Japan Bond Yields Near Multi-Decade Highs as War Fuels Inflation

Japan’s government bonds fell on Monday morning, pushing yields back toward multi-decade highs, as concerns mount that the widening conflict in the Middle East will stoke inflation.

Futures dropped as much as 59 ticks to 130.62, while the 10-year bond yield rose six basis points to 2.32%, near its highest level since 1999 that it hit in January. The five-year yield jumped 5 basis points to 1.72%, taking it to within a whisker of its highest since its debut.