FX.co ★ Japan 10Y Yield Hits Fresh 28-Year High

Japan’s 10-year government bond yield climbed to around 2.48% on Monday, its highest level since July 1997, as oil prices surged again following the collapse of US-Iran peace talks in Islamabad over the weekend. President Donald Trump also announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran, amplifying the risk of a further escalation in the global energy crisis. The protracted conflict has cast additional uncertainty over the Bank of Japan’s policy outlook, with officials split between those prioritizing rising inflation risks and those more focused on downside risks to growth. A former BOJ official noted that in periods of heightened uncertainty, the central bank’s usual response is to pause and reassess conditions. The BOJ is scheduled to hold its next policy meeting on April 27–28. Meanwhile, Economy Minister Ryosei Akazawa said monetary policy could be deployed as a tool to curb inflation by bolstering the yen.