Japan's super-long yields rise to all-time highs on fiscal, auction concerns
- Japan's longest-dated government bond yields surged to all-time highs on May 20, 2025, following a poor auction in Tokyo that raised concerns over demand.
- This surge occurred amid the Bank of Japan's quantitative tightening since mid-2024 and political debate over consumption tax cuts, with Prime Minister Ishiba opposing increased debt issuance.
- Yields on 40-year bonds reached 3.6%, while 20-year and 30-year yields also rose sharply, reflecting weakening market appetite as the BOJ reduced its holdings by ¥25 trillion since February 2024.
- Analysts noted the auction results were 'lacklustre' and highlighted structural demand slowdowns, with strategist Naomi Fink stating the government must maintain a commitment to returning to primary balance.
- The rising yields signal a fiscal warning for Japan's heavily indebted government and suggest potential market instability as the BOJ gradually withdraws its bond purchase support.
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12 Articles
Korean financial authorities hold meeting to assess impact of US, Japan bond yield surge
Korea's top financial officials convened a meeting Friday to assess the potential impact of rising U.S. and Japanese government bond yields on the domestic financial and foreign exchange markets, the finance ministry said. The meeting, chaired by acting Finance Minister Kim Beom-suk, brought together Bank of Korea Gov. Rhee Chang-yong, Financial Services Commission Chairman Kim Joo-hyun and Financial Supervisory Service Governor Lee Bok-hyun, ac…
Japan's super-long bonds get little relief after record yield surge
TOKYO :Long-dated Japanese government bonds saw little relief on Wednesday after a poor auction result sent yields to record levels and as more debt sales loomed in the weeks ahead. Super-long yields have been on the rise, following U.S. Treasury yields higher and as concerns swirled about new fiscal stimul
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