Japan’s once-slumbering bond market has roared back to life with a burst of volatility that is echoing around the world.

The Japanese central bank’s decision to slow the pace at which it cuts its monthly bond purchases came as its policy committee concluded a two-day meeting on Tuesday with a unanimous vote to hold short-term interest rates at 0.5 per cent.

Japan’s once-slumbering bond market has roared back to life with a burst of volatility that is echoing around the world. Major debt markets have moved in tandem with Japanese government bonds during the recent rout,

Yields on super-long Japanese government bonds rose to record levels last month due to dwindling demand from traditional buyers such as life insurers, and global market jitters over steadily rising debt levels. The 30-year JGB yield reached as high as 3.185% on May 21.

The normally sedate Japanese government bond (JGB) market has attracted global attention in recent weeks as a surge in yields sounded warnings for deeply indebted governments. Yields on super-long JGBs touched record levels last month,

For many years, Japanese bond market was very quiet. It was like a calm lake—barely moving. The Bank of Japan, which is the country’s central bank, used to control how much interest the government paid when borrowing money.

The explicit warning in the guidelines, which form the basis for budget planning, follows a recent bond market rout that briefly pushed yields on super-long Japanese government bonds (JGB ...

Total bond returns were expected to be positive in developed markets across the board in the rest of the year, according to JP Morgan. Year to date, the highest bond returns were realized in Australia,