TOKYO - Crude oil futures surged sharply as concerns over supply disruptions intensified amid renewed uncertainty surrounding the situation in Iran, pushing prices above $105 per barrel on April 12th and driving Japan long-term interest rates—represented by the benchmark 10-year government bond yield—to their highest levels in nearly three decades.
Buying accelerated in the evening trading session on April 12th for WTI crude, the benchmark for New York oil futures, as fears grew that supply disruptions could persist for an extended period, with prices at one point rising more than 9% from the previous weekend to reach the $105-per-barrel range.
Meanwhile, in the Japanese government bond market on April 13th, the yield on newly issued 10-year government bonds—a key indicator of Japan long-term interest rates—briefly climbed to 2.490%.
According to Japan Mutual Securities, this marks the highest level in approximately 29 years, extending a sharp upward trend in yields over the past year as Japan moves away from its long-standing ultra-low interest rate environment.
The 10-year yield has risen significantly from around the 1% level a year earlier to above 2% in recent months, reflecting both domestic policy shifts and global inflationary pressures.
The rise has been driven in part by the Bank of Japan’s gradual normalization of monetary policy, including rate hikes and reduced bond purchases, alongside increasing fiscal concerns and higher energy prices, with geopolitical tensions in the Middle East adding further upward pressure in recent weeks.
The rapid increase in long-term rates is expected to raise borrowing costs across the economy, posing new challenges for a country that has long operated under near-zero interest rates.
Source: テレ東BIZ
