Japan’s Super-Long Yield Premiums Hit Highest Since 2002

The premium that investors demand to hold Japan’s 30-year government bonds over five-year notes has widened to the most in more than two decades as global volatility and fiscal concerns drive up super-long yields.

The yield spread between the two stood at around 193 basis points on a compounded basis on Monday, the most since May 2002, according to Bloomberg’s calculation. Japan’s super-long bond yields shot up amid speculation authorities were preparing an extra budget to support the economy earlier than usual this fiscal year.