• Japanese sovereign bond yields are surging to the highest levels in more than a decade amid signs the central bank is ready to reduce debt purchases to ease pressure on the ailing yen.
• The yield on 20-year sovereign debt rose 3 basis points to 1.765% after touching 1.77%, the highest since 2013, while the 30-year yield reached its highest since at least 2011. The benchmark 10-year yield increased 2.5 basis points to 0.965%, just shy of a more than decade high.
• The Bank of Japan on Monday offered to buy a smaller amount of bonds, raising speculation it will accelerate the pace of monetary policy normalization to support the currency. Its next bond-purchase operation is on Friday. An auction of five-year notes also saw tepid demand, adding to signs of upward pressure on yields.
• The yen weakened slightly to 156.40 against the dollar, on track to fall for a third straight day.