BREAKING: Japan’s 40-year bond yield just hit 4%, the highest level since 2007.

This shows investors are no longer comfortable holding Japan’s long term debt. Confidence is clearly breaking.

With Japan’s massive debt, even a small rise in yields means the government must pay much more in interest, borrow even more to cover costs, and face tighter budgets across the economy.

More money will go into interest payments instead of growth.

At this stage, BOJ intervention is not a choice anymore. It’s becoming unavoidable.