Asia-Pacific sovereign bond prices fell and yields rose after a crude oil spike. OCBC Bank strategists said the move underscores that inflation risk, expectations of tighter central-bank policy and trade-condition pressure can re-emerge quickly. They linked the oil rise to renewed US-Iran tensions after Washington withdrew waivers on Iranian oil sales following attacks on three vessels in the Strait of Hormuz. Australia 10-year yield +6bp to 4.8820%; New Zealand 10-year +8bp to 4.5080%; Japan 10

Capital Economics analyst Shilan Shah says rapid expansion of Indian data centers could materially affect the macro outlook. While much debate on AI focuses on services disruption, AI still requires significant physical infrastructure. Announced data‑center investment for 2026–30 is roughly 0.5% of annual GDP; if this spurs upgrades to India’s power grid and water systems the macro impact could be substantially larger. Rising demand for domestic electronics and precision engineering capacity would also support India moving up the manufacturing value chain.

Asahi Shimbun reports the Japanese government may revise monetary-policy wording in its draft annual economic and fiscal policy guidelines to avoid giving the impression it is pressuring the Bank of Japan. The earlier draft described the "appropriate implementation" of monetary policy as "extremely important," a phrase some read as signaling opposition to further BOJ tightening. The updated draft adds inflation language, calling for appropriate monetary policy to promote stable price rises; a government official said the change reflects some market participants' misreading of the original wording.