Japan: 10-Year Yield Climbs as Oil Prices Rebound.

Japan’s 10-year government bond yield rose to around 2.78% on Friday, snapping a two-session decline as rebounding oil prices, driven by renewed tensions in the Strait of Hormuz, reignited concerns about inflation and the interest rate outlook. Meanwhile, data showed Japan’s household spending fell 3.3% in June, defying expectations for a 1% increase and underscoring continued weakness in consumer demand. On the monetary policy front, investors are looking toward a possible Bank of Japan interest rate hike in September after the central bank left policy settings unchanged last week. Minutes from the July policy meeting showed that several board members expect consumer inflation to accelerate significantly in the second half of the current fiscal year as companies continue implementing broad-based price increases across a wide range of goods.