According to BlockBeats, Japan's 30-year government bond yields have surged by 100 basis points to a record 3.20% over the past 45 days. This increase has resulted in a decline of over 20% in the value of more than $500 billion worth of 'safe' 40-year Japanese government bonds within six weeks.
Two years ago, the yield on Japan's 40-year government bonds was approximately 1.3%, but it has now risen to 3.5%. The Kobeissi Letter attributes this surge to a significant policy shift by the Bank of Japan (BOJ), which ceased its long-standing practice of purchasing bonds. This decision has increased the supply of bonds in the market, driving up yields.
Last week, Japan's Prime Minister warned that the country's fiscal situation is "worse than Greece's." As Japan's economy slows and uncertainty rises, yields are accelerating, posing significant challenges to the Japanese economy.