TOKYO -- As banks and life insurers avoid purchasing Japanese government bonds, the thinning ranks of buyers are making the market prone to wild fluctuations.
The yield on newly issued 10-year JGBs spiked from 0.225% to 0.265% at one point Tuesday, even in the absence of major developments that would have an impact on the market. Sell orders by domestic investors lifted interest rates quickly amid a dearth of active buyers.
