Analysis: Japan's 30-year government bond yield rose 100 basis points in 45 days, Japan's economy may be in recession

According to TheKobeissiLetter analysis, Japanese 30-year government bond yields jumped 100 basis points in 45 days to a record 3.20%. This means that safe 40-year Japanese government bonds worth more than $500 billion have fallen by more than 20% in six weeks. Notably, Japanese 40-year government bond yields were around 1.3% two years ago and are currently at 3.5%.
The Kobeissi Letter said the surge began with a major policy shift by the Bank of Japan (BOJ). After years of buying bonds, the BOJ stopped buying them. This led to more supply of bonds coming into the market, which pushed up yields. Last week, Japan's prime minister warned that its fiscal position was worse than Greece's. Yields are accelerating as Japan's economy slows and uncertainty rises. This will do great damage to the Japanese economy.