Japan’s Bonds Surge as Debt Crisis Fears Mount

Yields on Japanese government bonds reached record highs Tuesday, reflecting growing concerns about the nation’s fiscal health. A weak debt auction signaled waning investor confidence, sending shockwaves through global markets. Yields on 30- and 40-year bonds surged by 0.17 percentage points each, hitting their highest levels ever recorded. This surge also impacted shorter-term bond yields, as the 20-year bond spiked by 15 basis points to reach 2.56%. The auction’s wide tail – the difference between highest and lowest accepted prices – has not been seen since the 1980s.