Oil Price Rise Pushes Up Asia-Pacific Government Bond Yields as U.S.-Iran Tensions Reignite

Asia-Pacific government bond prices fell as oil prices rose. According to Jin10, two strategists at OCBC Group Research said in a research note that the latest rise in oil prices “reminds people that inflation risks, expectations of tighter central banks, and pressure on terms of trade could quickly re-emerge.” The strategists said the oil-price increase came as concerns resurfaced over renewed U.S.-Iran tensions after Washington revoked waivers for Iranian oil sales following attacks on three vessels in the Strait of Hormuz. Australia’s 10-year government bond yield rose 6 basis points to 4.8820%. New Zealand’s 10-year government bond yield climbed 8 basis points to 4.5080%. Japan’s 10-year government bond yield increased 2.5 basis points to 2.865%.