Rising Yields Fray Nerves Going Into Japan’s 30-Year Bond Sale

Traders are jittery going into Japan’s auction of 30-year government bonds Tuesday for any signs of a deepening selloff in the securities.

The ¥800 billion ($5.4 billion) offering comes as yields for that tenor climbed to the highest level in almost 25 years Monday, putting them in sight of an all-time high. That’s further steepening the yield curve and raising long-term borrowing costs at a time when life insurers are limiting purchases because of volatility and other investors are fretting about Japan ramping up defense spending under pressure from the Trump administration.