Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Japan's finance ministry is reportedly considering scaling back its buybacks of inflation-linked government bonds as investor appetite for these securities continues to grow on the back of rising inflation expectations. Two sources familiar with the discussions revealed the development on Monday, though both requested anonymity given the sensitivity of the matter.
Market-based inflation expectations, tracked through the break-even inflation rate, crossed 1.9% for the first time in late January — a threshold that has made inflation-protected securities increasingly attractive to institutional and retail investors alike. These bonds are structured so that both principal and interest payments adjust in accordance with consumer price growth, offering a natural hedge against inflation risk.
Under the proposed plan, the ministry would reduce its buyback volumes to 15 billion yen each in April and June — roughly half the 20 billion yen purchased monthly across January, February, and March. Officials are expected to consult market participants on the proposal in the coming weeks before reaching a final decision.
Notably, the issuance volume for inflation-linked bonds is expected to remain steady at 250 billion yen for May, signaling that the government aims to support continued market development even as it trims repurchase activity.
Japan originally launched inflation-linked bonds in 2004, but suspended issuance in 2008 as deflationary pressures threatened principal losses. The program was revived in 2013 under former Prime Minister Shinzo Abe's aggressive anti-deflation agenda. Since then, authorities have worked to strengthen the market through guaranteed principal protections and consistent buyback programs.
Inflation pressures in Japan had already been building before the Middle East conflict, which has since provided additional upward momentum to global prices. Despite a positive shift in the supply-demand gap for the first time in two quarters, economists caution that a sustained demand recovery still requires more time to materialize.
