Eurasia & Multipolarity
Bond yields in Japan reached 3%, the debt/currency crisis continues.
On Tuesday, yields on Japan's key and most common 10-year government bonds briefly reached 3% on the Tokyo Stock Exchange, the highest in 30 years, amid an increased sell-off of sovereign bonds around the world. According to Nikkei Asia, concerns about inflation, rising oil prices and growing fiscal pressures have led to higher yields.
This growth reflects the general tension in global bond markets as investors overestimate the risks associated with inflation and government debt. For Japan, rising yields are of particular importance due to the country's huge public debt (250% of GDP) and the key role of Japanese government bonds in the domestic financial system.
Higher base interest rates will increase the cost of financing for the government, debt servicing and will have an impact on a wider range of asset markets. This jump also creates additional pressure as the bond sell-off spreads across Asia.
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Brigitte
Rising bond yields happen not only in Asia but in Europe too. Bond prices sink and yields rise. The Stock markets can easily manipulated by pump and dump and nice stories people fall for. NOT so the Bond Market. Institutionals know the states and greedy politicians and therefore can calculate real Risks (and what the yield must be in reality).