Japan Bond Yields Near Multi-Decade Highs Ahead of 40-Year Auction

Japan's government bond yields have held near multi-decade highs due to inflation pressures. The benchmark 10-year JGB yield rose by 0.5 basis points to 3.090 per cent, nearing its 30-year high of 3.115 per cent reached last week.

The global bond market remains under pressure as US Treasury yields climb to multi-year highs, driven by inflation fears linked to rising oil prices and expectations of further Federal Reserve rate hikes.

The Japanese Finance Ministry will sell approximately 300 billion yen (around $1.91 billion) of 40-year JGBs later in the session, followed by an auction of two-year notes on Wednesday.

According to Takayuki Miyajima, senior economist at Sony Financial Group, yields on newly issued 40-year bonds are near record highs, with some demand expected from life and non-life insurance companies, as well as foreign investors.