Rising oil prices have triggered a new round of inflation concerns, and Japanese government bond yields are rising

Japanese government bond yields have risen, with the five-year bond yield reaching a record high, and the two-year bond yield also hitting its highest level since 1995. The rise in oil prices has triggered inflation concerns, and the market estimates the likelihood of the Bank of Japan raising interest rates in September at about two-thirds.

Despite the rise in yields, there has not yet been a significant support for the yen, mainly influenced by external factors, including the increase in U.S. long-term bond yields and the strength of the dollar against the yen.