BillHolter.com

Bill’s Commentary:

“Bye bye carry trade…”

Japan Bond Meltdown Sends Yields to Record High on Fiscal Fears

(Bloomberg) — The slump in Japanese bonds deepened Tuesday, sending yields soaring to records as investors gave a thumbs down to Prime Minister Sanae Takaichi’s election pitch to cut taxes on food.

The 40-year rate rocketed past 4% to a fresh high since its debut in 2007 and a first for any maturity of the nation’s sovereign debt in more than three decades. The jump in 30- and 40-year yields of more than 25 basis points was the most since the aftermath of President Donald Trump’s Liberation Day tariffs onslaught in April last year.

A lackluster auction of 20-year earlier underscored broader worries over government spending and inflation. Treasuries, already under pressure on concern that tariffs may dim the allure of US assets, extended declines as the selloff in Japanese debt accelerated.

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