Japanese Bonds Rebound on Call for Calm in Still-Volatile Market

Japan’s longer maturity bonds rebounded in a volatile market, with investors voicing concerns that the government and central bank may need to do more to calm the surge in yields.

The country will hold a snap election on Feb. 8, fueling worries there will be more wild swings ahead and keeping yields near historical highs. The yield on the 40-year tenor stayed above 4%, even after a drop of 17 basis points Wednesday. The slide in stocks deepened, and the yen - the worst performing G-10 currency so far this year - hovered around 158 against the dollar.