On Monday Japan government bonds fell as concern about inflation and fiscal
risks pushed the benchmark 10-year JGB yield up for a sixth session to 2.79%,
near Friday's intraday peak of 2.81% and the highest since Oct 1996. Yields have
risen over the past month, led by the long end, amid energy-driven inflation
risk, a sharp yen depreciation and worries over bigger government spending. Sony
Financial senior economist Ken Miyajima said entrenched fears of fiscal
expansion and cautious monetary management are keeping long and ultra‑long
yields from easing. Investors are watching uneven auction demand and this week's
30-year and 5-year JGB issues.
