The Nikkei 225 Index fell 0.2% to below 65,900 on Monday, extending losses from the previous session as investors remained cautious amid elevated global bond yields and persistent tensions in the Middle East. Global yields remained near multi-year highs as the US Treasury’s surprise bond buyback announcement last week failed to ease concerns over inflation and rising government debt. Geopolitical risks also remained in focus, with the US expected to announce new sanctions on Iran later in the day, although Iranian leaders said the measures would fail to weaken Tehran. Investors are also turning their attention to Nvidia’s upcoming earnings and guidance for clues about whether the AI-driven rally in equities can be sustained. Technology and AI-linked stocks were among the main decliners, with Kioxia Holdings down 0.6%, Advantest falling 1.1%, Fujikura dropping 3.1%, SoftBank Group declining 1.4%, and Furukawa Electric losing 1.7%.