Sudden Japan Bond Crash Unleashes Turmoil on Trading Floors

The selling in Japan’s $7.6 trillion bond market began slowly, then seemed to hit all at once.

What started as an unremarkable day on Tokyo trading desks quickly morphed into what several market participants described as the most chaotic session in recent memory. While concerns about Japan‘s fiscal position had been simmering for weeks, they suddenly boiled over on Tuesday afternoon with little warning — sending yields on some bonds to all-time highs.