Japan long bond yields just surged to an 11-month high

NEW YORK, NY – OCTOBER 10: Pedestrians pass the bronze Charging Bull sculpture next to Wall Street in the Financial District on October 10, 2013 in New York City. The Dow Jones Industrial Average rose over 300 points as investors saw promising developments in Washington that could lead to a short-term deal that would keep the United States from defaulting on its debt. (Photo by Spencer Platt/Getty Images)

Japan’s 30-year bond yields surged to the highest level in almost 11 months as investors snapped up equities and trimmed safe haven bets.

The rise comes amid improved corporate results which have reignited investor optimism for global economic growth.

The 30-year paper yielded 0.83%, the highest level since March 2016, taking gains in the session to 3 basis points. Bond yields fell earlier in the week on concerns of a “hard” Brexit and US president Donald Trump’s trade protectionist policies.

A string of positive corporate news including improved sales forecast from Chinese e-commerce firm Alibaba to BHP Billiton’s production report took the heat away from geopolitics and sent equity markets from Sydney to Tokyo higher in the Asian session after the S&P 500 index rose to a record high of 2285, before dropping slightly.

Japanese bonds, from one year to 40, are higher Wednesday, while Treasury yields gave up some of their Tuesday gains in Tokyo trading.

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