Japan's financial indiscipline amid rising inflation may disrupt its bond market, a senior executive of top lender Mitsubishi UFJ Financial Group said, in the wake of market expectations of an eventual end to ultra-low interest rates. The benchmark 10-year Japanese government bond (JGB) yield hit a decade-high of 0.805% this week, approaching the Bank of Japan's hard cap of 1.0% partly on simmering speculation the bank will soon phase out its massive stimulus programme. Globally bonds have been heavily sold for weeks - prompting the Bank of Japan to step in to steady the JGB market - as investors reckon on interest rates around the world staying elevated.