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 as much as 20 basis points to the highest level since the tenor’s debut in 1999, before paring some of the move. Shorter-maturity Japanese debt was also under pressure, underscored by weak demand at a sale of five-year notes that offered a record-high coupon of 2%.