Japan is about to auction 40-year bonds, and traders are on edge.

On Wednesday, Japan will auction 40-year government bonds, making investors uneasy; the volatility of the country's bond yields continues to affect global bond markets. From Tokyo to New York, people are concerned that increased government spending will put the budget deficit at risk, and this bond issuance is seen as a key test for long-term bonds. The Bank of Japan reducing bond purchases and institutional investors unwilling to fill the gap have exacerbated the challenges in the Japanese bond market. Japan's super-long-term government bonds rose on Tuesday, with the 40-year bond yield falling by 25 basis points, as signs indicate that the Ministry of Finance may be preparing to adjust bond issuance to calm the turmoil. Following last week's sharp rise in global borrowing costs, the trend in the Japanese bond market has also led to a decline in long-term bond yields in the United States and Germany, impacting foreign exchange trading.