Investing.com - Japan's 10-year bond yield fell deeper into negative territory on Wednesday, hitting an all-time low after Bank of Japan Governor Haruhiko Kuroda hinted at more policy easing.
Japanese 10-year bonds slumped to an intraday low of -0.055%, the weakest level on record, before closing at -0.047%, down 17.5%.
Speaking in parliament, Kuroda said that the BoJ will not hesitate to act if market volatility threatens its efforts to defeat deflation, suggesting that further yen strength or stock market weakness could trigger additional monetary policy easing.
Elsewhere, the 10-year German government bond yield fell 4.2 basis points, or 23.24%, to 0.142%, while the yield on U.S. 10-year Treasurys slumped 5.5 basis points, or 3.16%, to 1.69%.
Appetite for safer assets improved amid steep declines in oil prices and global stock markets.
European stock markets were under heavy selling pressure. Germany's DAX tumbled 2%, while London’s FTSE 100 shed 1.5%.
Across the Atlantic, U.S. stock futures also retreated, with the Dow futures falling more than 100 points, as concerns surrounding global growth and weak oil prices continued to grip markets.
Oil prices extended sharp losses from the prior session on Wednesday, after Saudi Arabia dashed hopes for collective production cuts and following bearish industry data on U.S. stockpiles.