Japanese government bond yields climbed on Friday, with the five-year yield hitting a record high as weak demand at a two-year bond auction added to selling pressure. Persistent inflation concerns also strengthened expectations for further monetary policy tightening by the Bank of Japan.
Yields extended their gains after the two-year Japanese government bond auction showed a notable decline in demand compared with the previous month’s sale. The weaker auction raised concerns about investor appetite for Japanese government debt at current yield levels, Reuters reported.
