JGB yields largely down as Middle East conflict escalates

Japanese government bond (JGB) yields broadly fell on Monday as violence escalated in the Middle East, boosting demand for safe-haven assets. However, an auction for the 20-year bond on Tuesday had investors treading carefully in the superlong end of the yield curve. The 10-year JGB yield fell 1.5 basis point (bps) to 0.745%, tumbling further from Friday's session high of 0.775%, with investors seeking security as the Israel-Hamas war continues to intensify.