Japanese bond yields rise amid economic concerns

According to BlockBeats, the yields on Japan's 30-year government bonds have risen by 100 basis points to a record 3.20% in the last 45 days. This increase has resulted in a drop of more than 20% in the value of over $500 billion in 'insured' 40-year Japanese government bonds in 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 increase to a significant shift in the Bank of Japan's (BOJ) policy, which has ceased its long-standing practice of purchasing bonds. This decision has increased the supply of bonds in the market, raising yields.

Last week, Japan's Prime Minister warned that the country's fiscal situation is "worse than Greece's". As Japan's economy slows down and uncertainty increases, yields are accelerating, posing significant challenges for the Japanese economy.