World economies are shaky as leaders are being forced to address their country’s sins in financing in the past.
According to Bloomberg:
A slump in Japanese bonds worsened Tuesday after the weakest demand at a government debt auction in more than a decade highlighted worries over the central bank’s retreat from the market.
The rout drove up the 20-year yield by about 15 basis points to the highest since 2000, while the yield on 30-year bonds climbed to the most since that maturity was first sold in 1999. Yields on the 40-year tenor rose to a record high in a sign of nervousness ahead of a sale of that debt next week.
The surge in yields underscores structural challenges particular to Japan’s debt market, along with the concerns of bond investors globally about the risks posed by rising government spending. Key Japanese buyers like life insurers aren’t stepping in to fill the gap as the central bank scales back its purchases of the nation’s bonds. Meanwhile, the Prime Minister’s comparison of his own nation’s fiscal position to that of Greece this week sharpened the focus on Japan’s huge debt burden.
Reuters reported from Singapore as well:
Japan’s longest-dated government bond yields climbed to all-time highs on Tuesday, after a poor auction sparked a selloff in the bond market as worries about the country’s fiscal health grow.The 30-year JGB yield soared 17 basis points to 3.14%, while the 40-year yield surged 15 bps to 3.6%.