Why Investors Are Worried About Japan’s Bond Market
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Yields on Japan’s long-dated bonds reached multi-year highs in early December, signaling weak investor demand amid concerns about increased government spending and the possibility of an interest-rate hike on Dec. 19.Japan’s normally stable $7.5 trillion bond market has endured months of uncharacteristic volatility — including several underwhelming auctions of government debt. The trouble erupted in May, when a poorly received auction of 20-year bonds sent yields soaring. An auction of 40-year bonds later that month added to the turbulence.