Global bond selloff spreads to Japan, gold hits record high

A global bond selloff extended on Wednesday, sending yields in Japan to record levels, and gold reached a new peak, as investors fret over mounting government debt.

European equities firmed while Asia's major stock markets were in the red.

"Government bond yields have jumped sharply in recent days, largely because investors are demanding a higher return to lend to countries with heavy borrowing needs," said Richard Carter, head of fixed interest research at Quilter Cheviot.

Yields on 30-year Japanese government bonds rose to an all-time high of 3.29 percent on Wednesday, while 20-year yields reached their highest since 1999.

The selloff in Japanese debt mirrors widespread moves in the United States and Europe, with investors spooked over substantial piles of government debt globally.