U.S. government bond yields rose on Tuesday after Japan unexpectedly raised the yield ceiling on 10-year Japanese government bonds, triggering a selloff in global long-term bond markets.
The return on the benchmark 10-year Treasury rose 7 basis points to 3.7528%, while the yield on 30-year government bonds rose more than 9 basis points to 3.7145%. Yields move inversely to prices.
The Bank of Japan caught markets off guard by changing its yield controls to allow yields of 10 year old JGB to move 0.5% either side of its 0% target from the previous 0.25% in a move aimed at softening the effects of prolonged monetary stimulus.
The move sent the Japanese yen and bond yields around the world sharply higher, while stocks in the Asia-Pacific region fell.
There are no major economic data releases or US Treasury auctions scheduled for Tuesday.