Analysis: The yield on Japan's 30-year government bonds has risen significantly by 100 basis points within 45 days, suggesting that the Japanese economy may be slipping into recession.

On May 26, Japan's 30-year government bond yield rose sharply by 100 basis points to a record 3.20% over a 45-day period, according to analysis by The Kobeissi Letter. This means that the "safe" 40-year Japanese government bonds, worth more than $500 billion, have fallen by more than 20% in six weeks. It is worth noting that two years ago, the yield on Japanese 40-year government bonds was around 1.3%, and it is currently at 3.5%. The Kobeissi Letter said the surge began with a major policy shift by the Bank of Japan (BOJ). After years of bond purchases, the Bank of Japan has stopped buying bonds. This has led to more supply of bonds entering the market, pushing yields higher. Last week, Japan's prime minister warned that its fiscal situation was "worse than that of Greece". As Japan's economy slows and uncertainty rises, yields are accelerating. This will cause great damage to the Japanese economy.