Here's the rub for those not in the loop:
Japan's 40-year bond yield hitting 4.215% is a record high since 2007. It means investors demand higher returns to buy Japanese government bonds, driven by fiscal concerns like PM Takaichi's tax cuts without clear funding, weak auctions, and global factors like Trump tariffs.Implications: Higher borrowing costs for Japan's massive debt, yen weakening (to ~158/USD), stock drops, and possible BOJ intervention. Forecasts suggest yields may fall to ~3.4% by quarter-end.