Will Japan's Lost 30 Years Come to an End?

Written by: Max.S & 章魚同學Nikki
Just 24 hours ago, Japan's financial history was rewritten. The Nikkei 225 index surged violently by more than 2,700 points, standing at a historic high of 57,000 points. This is not just a numerical breakthrough but a direct pricing of the results of the shortest alternative period (16 days) since the end of World War II for the House of Representatives election— the ruling coalition of the Liberal Democratic Party and the Japan Innovation Party secured an absolute majority of two-thirds in the House of Representatives.
However, while stock traders were popping champagne, bond trading desks were on high alert. Japanese government bonds (JGB) faced a fierce selling wave, with the 30-year government bond yield soaring to 3.615%, which is akin to a tsunami in a country like Japan, known for its long-term low interest rates.