Japan’s Long-Tenor Bond Yields Rise After 10-Year Debt Auction

Japan’s long maturity bond yields rose after a relatively smooth 10-year government bond auction failed to dispel ongoing fiscal and inflation concerns.

Bond futures pared gains after the sale, and the 10-year government bond yield hit a fresh high since 1999. Japanese government bond yields have recently risen to multi-decade highs as investors brace for Bank of Japan’s rate hike plans as well as Prime Minister Sanae Takaichi’s higher spending for economic growth.