Japan's 20-year treasury bonds welcomed the worst auction since 2012: the bid multiplier fell 2.5 times, far lower than 2.96 times last month; the margin soared from 0.34 in April to 1.14, the highest level since 1987. Affected by this, the yield on Japan's 20-year treasury bonds soared by about 15 basis points to the highest level since 2000; the yield on 30-year treasury bonds climbed to the highest level since the first issuance of this term bond in 1999; and the yield on the 40-year treasury bond also rose to a record high. Short-term Japanese bond yields, on the other hand, declined slightly. Faced with sharp fluctuations in the bond market, the Bank of Japan is facing the dilemma of whether to continue with quantitative austerity policies — continuing to push forward may further boost yields and cause huge book losses for bondholders; abandoning quantitative austerity may cause inflation to get out of control and the yen to collapse.

Japan's 20-year treasury bonds welcomed the worst auction since 2012: the bid multiplier fell 2.5 times, far lower than 2.96 times last month; the margin soared from 0.34 in April to 1.14, the highest level since 1987. Affected by this, the yield on Japan's 20-year treasury bonds soared by about 15 basis points to the highest level since 2000; the yield on 30-year treasury bonds climbed to the highest level since the first issuance of this term bond in 1999; and the yield on the 40-year treasury bond also rose to a record high. Short-term Japanese bond yields, on the other hand, declined slightly. Faced with sharp fluctuations in the bond market, the Bank of Japan is facing the dilemma of whether to continue with quantitative austerity policies — continuing to push forward may further boost yields and cause huge book losses for bondholders; abandoning quantitative austerity may cause inflation to get out of control and the yen to collapse.