Japanese Bond Yields Climb to Decade Highs on BOJ Policy Bets

  • Twenty-year yield rises to 1.77% after cut in operation size
  • Wide yield gap between Japan and US has fueled yen weakness
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Japanese sovereign bond yields are surging to the highest levels in more than a decade amid signs the central bank is ready to reduce debt purchases to ease pressure on the ailing yen.

The yield on 20-year sovereign debt rose 3 basis points to 1.765% after touching 1.77%, the highest since 2013, while the 30-year yield reached its highest since at least 2011. The benchmark 10-year yield increased 2.5 basis points to 0.965%, just shy of a more than decade high.