Japan’s government bonds slumped on Friday, tracking a selloff in the US bond market after escalating Middle East tensions drove up oil prices. The nation’s 10-year bond yield climbed 7.5 basis points to 2.985%, and the 20-year rate rose seven basis points to 3.82%. Australia’s three-year yield jumped as much as 20 basis points to 5.05%, its highest level since 2011, while New Zealand’s two-year yield climbed 24 basis points.

The move reflected broader global risk aversion as investors reacted to geopolitical instability in the Middle East, which pushed crude oil prices higher and intensified concerns about inflation and monetary policy tightening. Bond markets across the Asia-Pacific region showed synchronized weakness, with yields rising in tandem with US Treasuries.

Analysts noted that the selloff underscored how energy price shocks can rapidly transmit through global fixed-income markets, particularly when combined with expectations of prolonged central bank restraint. The spike in Australian and New Zealand yields highlighted regional sensitivity to both commodity swings and shifts in risk sentiment.