Global Bond Rout Spreads to Japan With Ultra-Long Debt Pressured
- Securities in Europe and Asia also came under selling pressure
- Traders are trying to figure out Fed’s path: Mizuho Securities
Japan’s bonds are the latest to succumb to a global debt selloff as traders unwind bets for aggressive US interest-rate cuts.
Yields on Japan’s 40-year government debt rose to a 16-year high on Wednesday, a day after their 10-year Treasury peers climbed past 4.2% for the first time since July. The losses have spread to German securities as well as Asian notes, while a gauge of total return in US sovereign bonds is getting closer to erasing its gains for the year.