Global Bond Selloff Intensifies as Japan Debt Fears Ripple Through Markets

US Treasuries plunged alongside global peers as concerns over Japan's debt sales triggered a wave of selling. The 30-year Treasury yield neared 5%, an abnormal MOVE signaling panic rather than typical volatility. Bloomberg reports the rout originated in Tokyo, where officials hinted at increased long-term bond issuance—a decision that reverberated across all major debt markets.

Japanese 30-year yields approached record highs, while Germany's long-dated rates surged to March peaks. "The supply-driven steepening of Japanese government bonds is clearly pushing bund and Treasury yields higher," said Rabobank strategist Lyn Graham-Taylor. Japan's fiscal tightening comes at a precarious moment, with slowing growth and renewed US trade tariffs threatening its export economy.