Japan Faces Tough 30-Year Bond Sale as Global Fiscal Risks Rise

Japan’s 30-year government bond auction Thursday faces added uncertainty from global debt market turmoil and political instability at home which has reignited concerns over the country’s fiscal outlook.

Investors are concerned the finance ministry’s bond sale may prove challenging amid mounting doubts about debt sustainability and sticky inflation. While the 10-year sale earlier this week drew solid demand, the 30-year yield surged to a fresh record of 3.285% in trading on Wednesday, tracking losses in long-dated US and European debt. The auction results are due at 12:35 p.m. Tokyo time.