Japan Bond Yields Near Multi-Decade Highs Amid Inflation Fears

Japanese government bond (JGB) yields held near multi-decade highs on Tuesday as inflation pressures mounted in the market.

The benchmark 10-year JGB yield rose by 0.5 basis points to 3.090 per cent, close to the 30-year high of 3.115 per cent reached last week. Yields move inversely to bond prices.

Global bond markets were under pressure as US Treasury yields climbed to multi-year highs, driven by inflation fears linked to surging oil prices and expectations of further Federal Reserve rate hikes.

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