A look at the day ahead in European and global markets from Tom Westbrook

There was relief in the Japanese government bond market on Tuesday, where a 10-year auction went off quite well and helped to stabilise a sell-off that had ricocheted around the world.

A healthy bid-to-cover ratio of nearly 3.6 was the highest since September and the “tail” or gap to where the market had been trading before the sale was negligible, with the benchmark yield just below a 17-year high at 1.86%.

Global bonds had been hammered after Bank of Japan Governor Kazuo Ueda laid the groundwork for a hike in December by saying policymakers would be weighing the “pros and cons” of a move.

Rising yields in Japan bring the nagging worry that the world’s biggest creditor nation may temper its demand for foreign de

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