On May 18, Japan’s 10-year government bond yield rose to 2.8% during intraday trading, marking its highest level since October 1996, according to Jin10 data. The yield gained 10 basis points as Japanese government bonds were caught in a global sell-off wave across bond markets. Tomonobu Yamashita, analyst at Bank of America Securities Japan, noted that supply-demand imbalances are driving the yield surge, and that near-term factors suggest limited near-term support for yields. The selloff was partly attributed to energy price concerns following delays in U.S.-Iran peace agreement negotiations.
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