BREAKING: Japan’s 10Y Government Bond Yield has surged to 2.30%, near the highest since 1999. This exceeds the 2008 Financial Crisis peak by 30 basis points.

Furthermore, the 5Y yield jumped to 1.72%, just a few basis points away from its all-time high.

This comes as rising oil prices and the escalation in the Middle East are fueling inflation fears among investors.

The sell-off also follows 3 consecutive weeks of losses in US Treasuries.

Meanwhile, the USDJPY currency pair is approaching the 160 level that triggered multiple Japanese Ministry of Finance interventions in 2024.

As a result, Japanese authorities warned on Monday they are “fully prepared to take action” on currency moves.

Asia is facing an energy crisis.