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 hit 4%, the highest since its debut in 2007 and a first for any maturity of the nation’s sovereign debt in more than three decades. The yield on 30-year and 40-year bonds climbed more than 25 basis points. A lackluster auction of 20-year the tenor earlier underscored broader worries over government spending and inflation.
