Analysis: Japan's 30-Year Government Bond Yield Rises Sharply by 100 Basis Points in 45 Days, Indicating Possible Economic Recession

According to a report by Jinse Finance, The Kobeissi Letter analysis indicates that within 45 days, the yield on Japan's 30-year government bonds surged by 100 basis points, reaching a record 3.20%. This means that over $500 billion worth of safe 40-year Japanese government bonds have fallen by more than 20% in six weeks. Notably, two years ago, the yield on Japan's 40-year government bonds was about 1.3%, and it is currently 3.5%. The Kobeissi Letter states that this surge began with a significant policy shift by the Bank of Japan (BOJ). After years of bond purchases, the BOJ ceased buying bonds. This led to more bond supply entering the market, thereby pushing up yields. Last week, Japan's Prime Minister warned that its fiscal situation is worse than Greece's. As Japan's economy slows and uncertainty rises, yields are accelerating upward. This will cause significant damage to Japan's economy.