The yield on Japan's 10-year government bond has risen to its highest level since 1997.

In the United States preparing to block the Strait of Hormuz, tensions escalate in the Middle East, and Japan's 10-year government bond yields climb to their highest level since 1997. In Tokyo on Monday, the benchmark rate rose by 5.5 basis points to 2.49%. The 10-year government bond futures price briefly fell by 55 ticks to 129.27. Negotiations over the weekend between Washington and Tehran failed to reach an agreement to end the conflict, casting a shadow over hopes for the fragile ceasefire agreement from last week to hold. The renewed escalation of tensions has pushed oil prices higher, exacerbating inflationary pressures in Japan, a country heavily reliant on energy imports from the Middle East. The ongoing weakness of the yen has raised import costs, increasing inflation risks. The yen's exchange rate against the US dollar once again approached the key level of 160 yen, prompting Japanese officials to issue stronger verbal warnings. Japanese Finance Minister Katsunobu Kato stated that considering the impact of exchange rate fluctuations on households and the economy, authorities are prepared to take action in various aspects of the market.