Japanese Government Bonds Slump as Volatility Saps Appetite

Japanese government bonds plunged, with the selloff concentrated in longer-dated debt, as elevated market volatility prompted investors to trim their exposure to fluctuating yields.

Yields on 40-year bonds soared to a record high, adding over 30 basis points to levels prevailing at 3 p.m. Tokyo time on Tuesday. Thirty-year yields also rose but trimmed gains of more than 20 basis points after the Ministry of Finance, Financial Services Agency and Bank of Japan said they will hold a three-way meeting later Wednesday. Two-year yields nudged one basis point lower.