Japan bond yields hold near multi-decade highs after 40-year auction

(Updates yield levels, adds details of auction result in paragraph 1 and the third bullet) By Rocky Swift TOKYO, Sept 29 (Reuters) — Japanese government bond (JGB) yields held near multi-decade highs on Tuesday as inflation pressures mounted, gaining little relief from a strong auction of super-long-term debt. 115% touched last week. Yields move inversely to bond prices. Global bond markets remained under pressure as US Treasury yields climbed to multi-year highs, driven by inflation fears linked to surging oil prices and expectations of further Federal Reserve rate hikes.

Bets are rising that the Bank of Japan will raise rates again by the end of the year. 91 billion) of 40-year JGBs. 82 at the prior sale in July, and marked the highest level since July 2020. An auction of 2-year securities will take place on Wednesday.

Yields near record highs on the 40-year bonds were expected to draw demand from insurance companies and foreign investors, Takayuki Miyajima, senior economist at Sony Financial Group, said in a note before the sale. "On the other hand, speculation about additional rate hikes by the Bank of Japan, expectations of a rising terminal rate, and concerns over fiscal expansion continue to weigh on the market," Miyajima wrote. 220%. 955%, easing from its 31-year peak reached in the prior session.

410%, down from a record high touched on Monday. com;)