The bond market is back in the danger zone, with US Treasury Secretary Scott Bessent trying to prevent Japan, the largest foreign holder of US debt, from worsening the situation. Long-term US yields are near multi-decade highs, and the 30-year yield has climbed back toward its highest since 2007. Japan's 10-year government bond yields around 3% for the first time since 1996, giving Japanese investors less reason to buy Treasurys, and a weaker yen could prompt Japan to sell Treasurys to support its currency. Japan-based investors sold a net $71 billion of US government debt through June, mostly short-term bills, but long-term sales were only $3 billion. Bessent has urged the Fed to expand the FIMA repo facility, which allows Japan to exchange Treasurys for cash instead of selling them, as a tool to prevent a crisis.
Japan's 10-year yield rises to ~3%, first time since 1996, as the article discusses the rise in JGB yields.
US 30-year yield climbs back toward highest since 2007, indicating upward pressure on long-term yields.
