The yield on Japan's 40-year government bonds reached 4%, the highest level since the issuance of this type of bond began in 2007. This marks the first time in over three decades that the yield on any Japanese sovereign debt has reached this level. The significant development of long-term yields reaching 4% is exceptional in the Japanese context. For decades, the Japanese bond market has operated in an environment of extremely low interest rates, driven by long-term quantitative easing policies and the government's efforts to keep borrowing costs low. The 40-year bond yield surpassing the 4% threshold reflects a notable shift in investor behavior and market structure.
