Japan’s Bond Market Strained: Government Faces Difficult Decisions

Japan’s bond market is facing immense pressure, with borrowing costs reaching record highs and investor demand plummeting. This has left the government and the Bank of Japan (BoJ) grappling with some of the most uncomfortable decisions in years. 30-year and 40-year bond yields have skyrocketed to their highest levels in a long time, driven by a lack of buyer interest.