Japanese government bonds experienced a broad selloff across various maturities on Wednesday, driving up borrowing costs for the world's most indebted nation. The 10-year JGB yield jumped 8 bps to 3.055%, the highest level since September 1996, while the 5-year yield climbed 7 bps to a record 2.345%. Additionally, the 30-year bond yield rose 5.5 bps to reach 4.125%.

The Finance Ministry is considering reducing the issuance of medium-term bonds in liquidity-enhancement auctions to stabilize the market, according to sources. The surge in yields increases interest expenses for the Japanese government and makes carry trades funded by the yen less attractive.