There's Been a 'Quiet Riot' in Japanese Government Bonds

A potential watershed moment as investors turn their attention from monetary to fiscal policies.
Photographer: Tomohiro Ohsumi
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Investors have been stealthily shedding Japanese government bonds, pushing yields on the benchmark 10-year security to their highest in almost six months.

JGBs have recorded their worst monthly performance since 2010 with longer-dated debt under particular pressure as investors fret that Bank of Japan Governor Haruhiko Kuroda will further reduce debt purchases following a comprehensive review of monetary policy on Sept. 20-21.