Japanese Bonds Surge on Bets That Government May Tweak Issuance

Japanese government bonds rallied Tuesday on signs that the finance ministry may be prepared to adjust debt issuance following a rout in the market.

The surge in appetite pushed yields in the nation’s 40-year debt down about 25 basis points, dragging down yields in longer-maturity bonds from US Treasuries to German bunds, while also weakening the yen. The reversal in sentiment extends a period of turmoil in global debt markets that’s been building since early April as US President Donald Trump raised tariffs and stoked fears over higher fiscal spending.