Japanese government bond prices fell in early Tokyo trading, impacted by a global sell-off in sovereign bonds. Concerns that energy prices could rise further, with little sign of a U.S.-Iran peace agreement, intensified the selling pressure. "There appear to be few catalysts in the near term that could restrain the rise in yields," said Tomonobu Yamashita, an analyst at BofA Securities Japan, in a research note. Yamashita added, "Supply-demand imbalances are pushing Japanese government bond yields higher." He also noted that "media reports indicate the Japanese government is considering drafting the first supplementary budget for fiscal year 2026." The yield on the 10-year Japanese government bond rose by 7.5 basis points to 2.775%, after earlier reaching 2.800%, its highest level since October 1996.
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