Japan bonds rally as stock rout triggers rush for safe assets

TOKYO, Oct 15 (Reuters) — Japanese government bonds (JGBs) rallied on Thursday, sending yields to more-than-one-month lows, as investors fled to safer assets after a hot reading of US inflation sparked an equity selloff on Wall Street that spilled over to Japan amid worries about higher interest rates. AI-related shares led losses as concerns about the sector flared, with US cloud-computing provider CoreWeave slumping more than 15% on Wednesday after reports its bonds had tumbled to levels typical of distressed debt. In a memo to employees, the company's CEO said its deal backlog is large enough to support its debt obligations. The benchmark 10-year JGB yield dropped 6.5 basis points (bps) to 2.93%, the lowest since September 10. Yields move inversely to bond prices The 30-year yield sank 4.5 bps to 3.995%, falling below the psychologically significant 4% line for the first time since September 10 Overnight, US CPI came in hotter than economists projected, stoking bets for faster rate hikes from the Federal Reserve US Treasury yields declined sharply, after initially rising in a knee-jerk reaction to increased risks of Fed hikes following the CPI data. On Thursday, the US 10-year y