The slump in bond yields, which threatens to eat into interest income of lenders, sparked record declines in the shares of Japan’s three biggest banks. Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. lost about 12 trillion yen ($111 billion) in market value in the past two trading days.
Turmoil in Japan’s financial markets boiled over Monday as the yen extended its rebound against the dollar to about 13% from July’s low and stocks tumbled into a bear market. Yields on benchmark Japanese government bonds slid by the most in more than two decades.
The accelerating moves continued to take investors by surprise, hurting everyone from mom-and-pop traders of shares and currencies to large hedge funds and institutions.
