German bond rout goes global as yields surge in Japan

Japan’s government bond yields reached their highest levels in more than a decade, and yields in Australia and New Zealand also surged as the rout in German bunds reverberated through global debt markets.

The yield on Japan’s 10-year note climbed 6.5 basis points to 1.5%, the highest since 2009. The 40-year yield jumped to a level unseen since its inception in 2007, and bond futures dropped as much as 81 ticks.

Government bonds in Australia and New Zealand followed the selloff, with their benchmark 10-year yields both rising about 10 basis points. The yield on similar-tenor U.S. Treasury notes added 3 basis points to 4.31% in the third day of gains. French debt futures fell to 121.54 from a last traded price of 121.78.