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

Japan's bond yields remain near multi-decade highs as inflation pressures intensify, setting the stage for an upcoming auction of 40-year government bonds.

The benchmark 10-year JGB yield rose by 0.5 basis points to 3.090 per cent on Tuesday, close to its 30-year high of 3.115 per cent reached last week.

Global bond markets are under pressure due to rising US Treasury yields driven by inflation fears linked to surging oil prices and expectations of further Federal Reserve rate hikes.

The Japanese Finance Ministry plans to sell approximately 300 billion yen (US$1.91 billion) worth of 40-year JGBs later in the day, followed by an auction of two-year notes on Wednesday.