Japan's 20-Year Bond Yields Hit 2.67% - Bond Strategist Reveals Why This Changes Everything

Japan's 20-year bond yields just jumped to 2.67%, marking a 3-basis-point climb that has bond traders doing double-takes at their screens. Meanwhile, the 30-year Japanese Government Bond yields have rocketed to 3.25%, creating what analysts politely call a "steepening yield curve" - which in plain English means investors are demanding higher returns for the privilege of lending money to Japan for longer periods.

The math here tells a story that even your risk-averse grandmother would understand: when a government owes more money than a college student with five credit cards, lenders start get...