Japan Leads Global Bond Markets Lower as Inflation Fears Rise

A deepening slump in Japanese government bonds added fuel to the selloff in global debt markets as rising oil prices stoke inflation fears and push yields to multi-decade highs.

Japan’s 30-year yield surged 20 basis points to the highest level since the tenor’s debut in 1999, leading upward moves of around 10 basis points in 10- and 20-year yields. Five-year yields also climbed as investors awaited the results of an auction of the notes at 12:35 p.m. in Tokyo on Monday.