Analysis: The 30-year Japanese Government Bond (JGB) Yield has surged by 100 basis points in the last 45 days, indicating that the Japanese economy may be heading towards a recession.

BlockBeats News, May 26th. According to analysis from The Kobeissi Letter, within 45 days, the yield on Japan's 30-year government bonds has surged by 100 basis points, reaching a record high of 3.20%. This means that the value of over $500 billion of "safe" 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 now at 3.5%.

The Kobeissi Letter states that this sharp increase began with a significant policy shift by the Bank of Japan (BOJ). After years of bond buying, the Bank of Japan ceased its bond-buying behavior. This led to more bond supply entering the market, driving up the yield.

Last week, the Japanese Prime Minister warned that its fiscal situation is "worse than Greece." With the Japanese economy slowing down and uncertainty rising, the yield is rapidly increasing. This will cause significant damage to the Japanese economy.