Japan Benchmark Yield Posts Biggest Weekly Gain Since January

Japan’s benchmark bond yields rose above 1 percent and completed the biggest weekly gain since January on concern the government will fail to rein in the world’s largest debt burden.

Twenty-year bonds fell the most since May today after Standard & Poor’s said yesterday it may be closer to lowering Japan’s sovereign grade because Prime Minister Yoshihiko Noda’s administration is failing to improve the nation’s finances. The International Monetary Fund said this week there’s a risk a “sudden spike” in yields may make the nation’s borrowings unsustainable. Japan’s bonds dropped as German notes fell this week after demand was the weakest since 1995 at a bund auction.