Analysis: Japan's 30-year government bond yields have risen 100 basis points in 45 days, and the Japanese economy may be in recession

according to TheKobeissiLetter analysis, within 45 days, the yield on Japan's 30-year government bonds rose sharply by 100 basis points, reaching a record high of 3.20%. This means that the value of over $500 billion worth of 40-year Japanese government bonds has dropped by over 20% in 6 weeks. It is worth noting that two years ago, the yield on Japan's 40-year government bonds was around 1.3%, and it is currently at 3.5%.

The Kobeissi Letter states that this surge began with a major policy shift by the Bank of Japan (BOJ). After years of bond purchases, the BOJ has stopped buying bonds. This has led to more bond supply entering the market, thereby pushing up yields. Last week, the Japanese Prime Minister warned that their fiscal situation is worse than Greece's. With the slowdown in the Japanese economy and increasing uncertainty, yields are rising rapidly. This will cause great damage to the Japanese economy.