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Market Extra: Here’s how a global bond selloff forced BOJ to check a yield surge in JGBs

The Bank of Japan on Friday stepped in on Friday to tamp down an ungainly yield swing in its sovereign debt, renewing its vow to keep its long-term interest rate close to zero.

Since last week, central bankers from Canada, the U.K. and Europe have made overtures of tightening monetary policy, sparking a recent world-wide rout in government debt, sending the German bond, known as the bund TMBMKDE-10Y, +1.97% for example, to an 18-month high at 0.57%, compared with 0.46% at the start of the week. Bond prices moves inversely to yields.

The tremors of the government bond selloff rippled as far as Tokyo, pushing Japanese benchmark 10-year notes, known as JGBs TMBMKJP-10Y, -9.24% briefly to a Friday peak of 0.105%, its highest since Feb.

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