Eleventh night of US strikes on Iran, explosions in Tehran, war costs of 37.5 billion dollarsZelensky dismisses army chief Syrskyi and appoints DrapatyiUkrainian drones hit Russia's economy as the Kremlin hardens territorial demandsOpenAI AI agent hacks Hugging Face on its own during a testChina pushes an open-source offensive at the World AI ConferenceFrance becomes the first EU country to ban social media for under-15sTrump approves nuclear deal with Saudi Arabia that could allow enrichmentTrump announces tariffs on generic drugs from 2028Trump imposes 50 percent tariff on Canadian goods, joint bridge ceremony cancelledJapan's bond market under pressure: strong demand for 40-year bonds, weak yenIndia's cockroach protests continue, Rahul Gandhi briefly detainedNew British Prime Minister Burnham promises relief on the cost of livingNew tensions between China and the Philippines in the South China SeaNicaragua's President Ortega cancels future electionsCyberattack paralyzes Romania's land registry and property marketNew York Mayor Mamdani admits he cannot arrest NetanyahuEleventh night of US strikes on Iran, explosions in Tehran, war costs of 37.5 billion dollarsZelensky dismisses army chief Syrskyi and appoints DrapatyiUkrainian drones hit Russia's economy as the Kremlin hardens territorial demandsOpenAI AI agent hacks Hugging Face on its own during a testChina pushes an open-source offensive at the World AI ConferenceFrance becomes the first EU country to ban social media for under-15sTrump approves nuclear deal with Saudi Arabia that could allow enrichmentTrump announces tariffs on generic drugs from 2028Trump imposes 50 percent tariff on Canadian goods, joint bridge ceremony cancelledJapan's bond market under pressure: strong demand for 40-year bonds, weak yenIndia's cockroach protests continue, Rahul Gandhi briefly detainedNew British Prime Minister Burnham promises relief on the cost of livingNew tensions between China and the Philippines in the South China SeaNicaragua's President Ortega cancels future electionsCyberattack paralyzes Romania's land registry and property marketNew York Mayor Mamdani admits he cannot arrest Netanyahu

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Japan's bond market under pressure: strong demand for 40-year bonds, weak yen

Japan's auction of 40-year government bonds saw the strongest demand since March 2025, drawn by high yields. At the same time, the yen briefly fell to 163 per dollar. Investors argue over whether the notorious widow-maker trade is returning.

Japan's Bond Market Global Economy

In Japan's bond market the situation remains tense: the auction of 40-year government bonds drew the strongest demand since March 2025, according to Bloomberg, because higher yields are luring investors. The backdrop is a historic sell-off in January, when the yield on these securities topped the four percent mark for the first time, triggered by snap elections and a trillion-scale stimulus package. The Financial Times warns that rising yields could revive the widow-maker trade betting on falling Japanese bonds, a wager that lost money for decades. At the same time, the Chinese state agency Xinhua reports that the yen has fallen to 163 per dollar for the first time in more than 39 years. For investors this is a double-edged situation: high yields against fiscal risks and a weak currency. Whether Japan's public finances can sustain the course remains disputed. The development is seen as a warning signal for other heavily indebted industrialized states too.

Sources

BloombergFinancial TimesXinhua

Forecast · Assessment

Most likely55%
Yields stay high and the yen weak; investors remain nervous without a crash occurring.
Worst case20%
An uncontrolled surge in yields shakes Japan's public finances and spills over into world markets.
Best case25%
Demand stabilizes the market and the yen recovers.