Market Braces for Pivotal 20-Year Japan Bond Sale as Yields Rise

An auction of 20-year Japanese government bonds Thursday will beam the searchlight back on rising yields as a looming election heightens concerns about fiscal expansion.

The sale is just one of several in major debt markets this week as increasing yields on some longer maturities show how investors are worried about widening budget deficits. While yields on 10-, 20- and 30-year Japanese bonds moved lower during morning trade in Tokyo, they remained within reach of recent highs.