Japanese government bond yields closed at their highest level in three months on Thursday as poor demand at a 10-year bond auction underscored concerns over rising issuance in the world’s largest bond market.

The benchmark 10-year JGB yield rose 3 basis points to 1.44 per cent. At the Y2,100bn auction, 37.6 per cent was accepted at the lowest price, and that price was the lowest since February.