Japan 5-Year Notes Jump, Longer Bonds Fall on Debt Sale Concern
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Japan’s five-year notes rose the most in more than two years as investors sought the relative safety of government debt after the nation’s strongest earthquake on record triggered a nuclear crisis.
The extra yield investors demand to hold Japan’s 30-year bonds instead of five-year notes rose to a three-month high on concern the country will sell more debt to finance reconstruction. The Bank of Japan today said it will buy more government debt to “enhance” monetary easing. Bonds with longer maturities fell as costs surged to protect Japanese debt from nonpayment.