Japan’s Bond Market Turmoil Sparks Global Financial Concerns
Japan’s long-term government bond yields surged to record highs as investor confidence crumbled following a poorly received debt auction. The 30-year yield jumped 17 basis points to 3.14%, while the 40-year benchmark climbed to 3.61%—marking the widest auction tail since the 1980s.
The Bank of Japan’s gradual tapering of bond purchases has amplified market volatility, with traders warning of potential spillover effects across global markets. This policy shift away from ultra-loose monetary measures now faces mounting scrutiny as liquidity concerns intensify.