Japanese Bonds Tumble as Fiscal Worries Mount Before Election

The slump in Japan’s long-term bonds intensified Monday, pushing yields sharply higher in a move that puts global debt markets on alert.

Amid signs of thin liquidity and increasing worries about higher government spending in Japan, yields on bonds from the 10-year to the 40-year spiked in moves reminiscent of the surge that rippled through global markets in May.