Japanese Bond Yields Decline Ahead of Test at 40-Year Auction

Yields on Japan’s super-long bonds extended their retreat to a third day amid speculation the government may consider reducing issuance of the debt after a rout last week drew global attention.

Rates on 40-year and 30-year maturities slid about 10 basis points in Tokyo on Tuesday. This follows last week’s carnage which saw 40-year yields rise to 3.675%, the highest since the tenor’s debut in 2007.