The 40-year Japanese government bond yield reached its highest since inception amid a global debt selloff and expectations that the Bank of Japan will hike interest rates in coming months.
The yield rose as much as 3 basis points to 2.755%, the highest since 2007 when the bonds were sold for the first time. Japan’s 20-year yield also rose to its highest since May 2011 this morning after the nation’s markets reopened following a public holiday on Monday.
Global yields have been rising amid worries about lingering inflation and widening fiscal deficits. The U.S. economy has seen stronger-than-expected data that’s prompted traders to rein in expectations of rate cuts by the Federal Reserve, while the market is also trying to assess the impact of President-elect Donald Trump’s victory.
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