Japan’s Surging Yields Put Policymakers in a Tough Position (1)

After years of moving at a glacial pace, yields in Japan’s $7.8 trillion government debt market are shifting higher at breakneck speed.

The moves in the nation’s longer-maturity bonds have been particularly acute, outpacing anything seen in other major markets.

The surge has pushed 30-yearyields to within a whisker of a record high and to double the level of the benchmark 10-year rate, which has also ascended rapidly after being near zero just four years ago.

That sharp climb looks to be far from over, with broad implications from monetary and fiscal policy to investments.

The Bank of ...