Japanese Yen Steady Amid Bond Market Volatility

The Japanese yen stabilized as turmoil in the bond market continued to focus attention on the financial health of major economies.

Japan’s Kyodo News reported on Wednesday that the yen pared losses to trade at 144.445 to the dollar, after falling 1% yesterday following reports that Japan would consider reducing its issuance of long-term bonds after a sharp rise in yields in recent weeks. Focus remained on the Japanese bond market, where demand at an auction of ultra-long-term Japanese government bonds fell to its lowest level since July.

The yield on the 40-year Japanese government bond hit a record high last week amid concerns about the size of the debt in Japan and other developed markets, such as the United States, which led to a sell-off of long-term bonds worldwide.