Japan’s Bond Market Collapses as BOJ Policy Shifts Trigger Yield Surge

Japan’s 30-year government bond yield has surged to a record high of 3.20%, driven by the Bank of Japan’s (BOJ) abrupt shift in its bond-buying policy. The BOJ’s decision to cease bond purchases, after years of active intervention, has led to a significant increase in bond supply and subsequently, yields. This sudden volatility threatens to exacerbate already existing economic challenges for the Japanese economy, as analysts warn of possible parallels with historical fiscal struggles.