Japanese government bond yields surged on Monday, reaching levels not seen in decades, as tensions in the Middle East heightened inflation concerns. The 10-year bond yield climbed 6 basis points to 2.32%, approaching a high last seen in January 1999. Meanwhile, the 5-year bond yield rose 5 basis points to 1.72%, nearing its historical peak. These movements align with U.S. Treasury yields, which have also reached multi-month highs. The escalation in the Middle East, marked by Trump's 48-hour ultimatum to Tehran to open the Strait of Hormuz, has intensified market anxieties. Trump threatened military action against Iran's power infrastructure if the deadline, set to expire Monday evening Eastern Time, is not met.