A capillary bonding tool for wire bonding includes a first section, a second section and a bonding section. The first section has a first outer peripheral sidewall, an opposing first inner sidewall that extends generally parallel to the central longitudinal axis, and a first opening surrounded by the first inner sidewall. The second section has a second outer peripheral sidewall, an opposing second inner sidewall that extends at an angle with respect to the central longitudinal axis, and a second tapered opening surrounded by the second inner sidewall. The bonding section has a peripheral ridge extending axially outwardly from the second inner sidewall of the second section. The peripheral ridge has a third outer peripheral sidewall, a third inner tubular sidewall that extends generally parallel to the central longitudinal axis and radially outwardly of the first inner sidewall, and a third opening surrounded by the third inner tubular sidewall.