🔶The 40Y JGB yield reaches the highest in history. Something very big is about to happen.

Sanae Takaichi, although not directly calling for dissolving the National Diet, signals a desire to dissolve the House of Representatives and hold early elections to restore the government's legitimacy.

Sanae Takaichi proposes reducing the food tax to 0% for 2 years to ease the cost of living pressure on citizens. This means the Japanese government must shoulder an additional $65B to cover losses.

It is expected that Tokyo wants to offset the deficit by cutting subsidies and increasing non-tax revenue instead of continuing QE.

-> Japanese bonds are experiencing an unprecedented sell-off due to concerns over unsustainable fiscal policies. The 30Y yield skyrocketed to 3.913%, and the 40Y has surpassed 4.00% for the first time in history.