Japan's yield surge triggers global bond rout as Greenland tensions loom

Japanese government bond yields jumped to multi-year highs, triggering a spillover into global debt markets as investors price in higher debt and possible fiscal stimulus. In two days, 10-year JGB yields rose about 19 basis points, and 30-year yields posted their largest daily rise since 2003, prompting firmer moves in U.S. Treasuries and European bonds. Greenland tensions and tariff threats added to the pressure, raising expectations of more European defense spending and debt issuance and sparking shifts in investor flows away from safe havens. Analysts describe the environment as a 'perfect storm' for fixed income.