The China Mail - Japan's long-term borrowing costs, gold hit record highs

USD -
AED 3.672498
AFN 64.000326
ALL 82.68029
AMD 367.135014
ANG 1.790403
AOA 916.999809
ARS 1477.225982
AUD 1.448845
AWG 1.8
AZN 1.702453
BAM 1.715275
BBD 2.014515
BDT 123.02835
BGN 1.69088
BHD 0.377119
BIF 2970.641759
BMD 1
BND 1.294218
BOB 6.912067
BRL 5.176399
BSD 1.000241
BTN 93.880701
BWP 13.593527
BYN 2.900919
BYR 19600
BZD 2.011585
CAD 1.418275
CDF 2270.000387
CHF 0.808603
CLF 0.023386
CLP 920.39016
CNY 6.80385
CNH 6.80532
COP 3436.33
CRC 454.120897
CUC 1
CUP 26.5
CVE 96.704174
CZK 21.28265
DJF 178.120998
DKK 6.55597
DOP 58.769103
DZD 133.313032
EGP 49.508698
ERN 15
ETB 161.263403
EUR 0.877098
FJD 2.266103
FKP 0.756718
GBP 0.75655
GEL 2.645009
GGP 0.756718
GHS 11.278044
GIP 0.756718
GMD 73.000078
GNF 8764.059725
GTQ 7.63095
GYD 209.335368
HKD 7.84221
HNL 26.762262
HRK 6.609701
HTG 130.728584
HUF 310.600502
IDR 17859
ILS 2.997769
IMP 0.756718
INR 94.36415
IQD 1310.26771
IRR 1375050.000106
ISK 126.301278
JEP 0.756718
JMD 157.530312
JOD 0.708976
JPY 161.650502
KES 129.509862
KGS 87.449975
KHR 4014.99704
KMF 433.999764
KPW 900.00035
KRW 1536.095377
KWD 0.30962
KYD 0.833556
KZT 485.307724
LAK 21954.438817
LBP 89573.137575
LKR 336.229088
LRD 182.200101
LSL 16.441492
LTL 2.95274
LVL 0.60489
LYD 6.420634
MAD 9.379032
MDL 17.734997
MGA 4230.669724
MKD 54.081445
MMK 2099.450161
MNT 3580.242389
MOP 8.08004
MRU 39.918437
MUR 47.710173
MVR 15.450036
MWK 1734.46298
MXN 17.515645
MYR 4.089304
MZN 63.89854
NAD 16.441492
NGN 1378.749823
NIO 36.808525
NOK 9.913875
NPR 150.211581
NZD 1.770015
OMR 0.384494
PAB 1.000285
PEN 3.41073
PGK 4.389446
PHP 61.307995
PKR 278.373232
PLN 3.76004
PYG 6104.908659
QAR 3.645931
RON 4.597099
RSD 102.978994
RUB 77.741848
RWF 1464.86285
SAR 3.756188
SBD 8.051953
SCR 14.043416
SDG 600.000332
SEK 9.71586
SGD 1.29417
SHP 0.746601
SLE 24.795264
SLL 20969.503664
SOS 571.66663
SRD 37.319991
STD 20697.981008
STN 21.486987
SVC 8.751743
SYP 110.532098
SZL 16.431845
THB 33.380139
TJS 9.257398
TMT 3.5
TND 2.96472
TOP 2.40776
TRY 46.592504
TTD 6.797662
TWD 31.889202
TZS 2622.693046
UAH 44.895745
UGX 3671.108656
UYU 40.151731
UZS 12014.822286
VES 620.752985
VND 26300
VUV 119.950905
WST 2.785497
XAF 575.287334
XAG 0.017191
XAU 0.000247
XCD 2.70255
XCG 1.802627
XDR 0.716453
XOF 575.284811
XPF 104.593392
YER 238.625007
ZAR 16.461103
ZMK 9001.19602
ZMW 18.017813
ZWL 321.999592
  • CMSC

    -0.0190

    22.046

    -0.09%

  • BCC

    2.1000

    79.76

    +2.63%

  • CMSD

    -0.0900

    21.93

    -0.41%

  • JRI

    0.0100

    12.58

    +0.08%

  • BP

    -0.1400

    37.72

    -0.37%

  • GSK

    0.8000

    51.89

    +1.54%

  • NGG

    0.5900

    83.42

    +0.71%

  • BTI

    1.0900

    62.48

    +1.74%

  • BCE

    0.0000

    23.2

    0%

  • RIO

    1.0800

    95.11

    +1.14%

  • RYCEF

    0.7000

    18.7

    +3.74%

  • RBGPF

    0.0000

    61.3

    0%

  • RELX

    -0.2300

    30.92

    -0.74%

  • AZN

    2.6600

    185.68

    +1.43%

  • VOD

    0.0500

    13.86

    +0.36%

Japan's long-term borrowing costs, gold hit record highs
Japan's long-term borrowing costs, gold hit record highs / Photo: © AFP/File

Japan's long-term borrowing costs, gold hit record highs

A global bond selloff extended into Asia on Wednesday with yields in Japan hitting record levels, while gold reached a new peak as investors fret about public finances in countries from Japan to the United States.

Text size:

Investors in Japan are also reacting to concerns that Prime Minister Shigeru Ishiba might soon be forced to step down after the number two in his ruling Liberal Democratic Party (LDP) offered to quit on Tuesday over July's disastrous upper house election.

Asian markets were largely in the red, with Tokyo down 0.9 percent. European bourses opened lower before recovering, after falling on Tuesday.

Yields on 30-year Japanese government bonds rose to an all-time high of 3.29 percent, while 20-year yields reached 2.69 percent -- their highest since 1999.

"The Japanese 30-year yield's breach of 3.25 percent may prove far more destabilising than local politics," Stephen Innes of SPI Asset Management wrote in a note.

"A clean break above that threshold doesn't just unsettle Japanese savers; it forces insurers, pensions, and reserve managers worldwide to recalibrate their models. Once those rebalancing dominoes start to fall, equity markets everywhere feel the aftershocks," Innes said.

Japan is due to hold a 30-year bond auction on Thursday, though buyer interest has been muted.

"The selloff in long-duration bonds is fuelled by several factors: concerns over ballooning sovereign debt, political hurdles to fiscal tightening (France is a case in point), and structurally higher inflation," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

The selloff in Japanese debt mirrors widespread moves in the United States and Europe, with investors spooked over substantial piles of government debt globally.

The US 30-year yield flirted with the five-percent mark, while Britain's 30-year gilt yield climbed to levels not seen since 1998. In France, the 30-year yield spiked to 4.5 percent for the first time since 2009 -- highlighting concerns around over a budget standoff in Paris.

Traders have been turning to traditional safe havens, pushing gold to a record high of $3,546.96 an ounce.

Prices have risen five percent over the last six days, with traders nervous over the US Federal Reserve's future after President Donald Trump attempted to fire Fed Governor Lisa Cook.

"President Trump's return to the White House may have altered investor preference of safe havens," said Carol Kong of the Commonwealth Bank of Australia.

"Gold outperformed, gaining more than 30 percent year‑to‑date. The risk is the USD further loses its safe haven appeal if President Trump continues to undermine the independence of key US institutions, particularly the Federal Reserve."

- Key figures at around 0700 GMT -

Tokyo - Nikkei 225: DOWN 0.9 percent at 41,938.89 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 25,317.78

Shanghai - Composite: DOWN 1.2 percent at 3,813.56 (close)

New York - Dow: DOWN 0.55 percent at 45,295.81 (close)

London - FTSE 100: DOWN 0.9 percent at 9,116.69

Paris - CAC 40: DOWN 0.7 percent at 7,654.25

Frankfurt - DAX: DOWN 2.29 percent at 23,487.33

Euro/dollar: DOWN at 1.1632 from $1.1640 on Tuesday

Pound/dollar: DOWN at 1.3365 at from $1.3394

Dollar/yen: UP at 148.78 from 148.37 yen

Euro/pound: UP at 87.03 pence from 86.92 pence

Brent North Sea Crude: DOWN 0.3 at $68.91 per barrel

West Texas Intermediate: DOWN 0.3 percent at $65.39 per barrel

S.Davis--ThChM