The Bank of Japan (BOJ) has a dominant position in Japan’s bond market, controlling over half of the nation’s entire debt. With this unprecedented level of ownership reaching new heights, analysts are concerned about potential implications for market liquidity and yields. 52% of Japanese government bonds currently belong to the BOJ, with life insurers holding only a fraction (13.4%), banks 9.8%, and pension funds at 8.9%. This significant dominance has been fueled by the central bank’s role in supporting the debt market for years. However, rising costs, falling demand, and an economy too fragile to handle this much debt are pushing Japan’s government towards a critical point.