Japan's 10-year bond yield hits 13-year high; Nikkei average sinks

TOKYO -- Thursday has been a busy day for traders and investors in Japan's financial markets as the 10-year government bond yield rose to a 13-year high, the Nikkei Stock Average was down by more than 2% at one point, and the yen touched its lowest point in four weeks against the dollar.

Speculation that the U.S. Federal Reserve will keep its policy rate higher for longer has grown among investors, weakening demand for bonds globally. Bond prices move inversely to yields. The less dovish view on Fed policy has triggered a sell-off of risk assets such as stocks. Meanwhile, the growing yield gap between the U.S. and Japan is weighing on the yen.