◇Bond Market Opening: Futures Decline as High Oil Prices Remain a Burden

◇Bond Market Opening: Futures Decline, Weighing Continued Burden from Rising Oil Prices In the domestic bond market at the morning opening on the 13th, futures prices fell. The benchmark June contract, which replaced the March contract that began evening trading at 3:30 PM on the 12th, opened at ¥131.42, down 29 yen from the previous day. Subsequently, there were moments when the decline widened to ¥131.34. The rise in oil futures prices has resumed an upward trend, increasing concerns about upward pressure on domestic prices, which has led to selling pressure on domestic bond futures. On the 12th, Iranian state media first reported a statement from Supreme Leader Ayatollah Ali Khamenei, explicitly declaring that Iran will continue to blockade the Strait of Hormuz, a critical energy transport route, and emphasizing its use as a means of pressure in the event of war. Iran's clear stance of confrontation with the United States and Israel has heightened market concerns about the prolonged duration of potential disruptions. New York oil futures prices rose on the 12th, with the near-month April WTI (West Texas Intermediate) contract ending at $95.73 per barrel, up 9.7% from the previous day. In subsequent trading during Japanese time on the morning of the 13th, prices briefly climbed into the $98 range, indicating a continued high price trend. As Japan imports the majority of its energy, rising oil prices are expected to push up import prices and accelerate domestic inflation, which continues to weigh on bond futures prices. In the cash bond market, no transactions have been executed so far through Nikko Cordial Securities, which mediates dealer-to-dealer trades. In the short-term money market, the March contract for the unsecured overnight call rate (TONA) futures on the Osaka Exchange remains untraded. 〔Nikkei QUICK News (NQN)〕