Japan's ultra long term treasury bond bond market has been violently shaken, and the central bank's policies and fiscal concerns have triggered a chain reaction

Recently, the Japanese ultra long term bond market has suffered a "bloodbath", with yields continuing to soar to historic highs. Yesterday, the Bank of Japan released briefing materials used in its meeting with bond market participants, which mentioned that the decline in liquidity and demand for ultra long term bonds was the main reason, despite differing opinions. Some market participants are urging the Bank of Japan to increase its purchases of ultra long term bonds, or to terminate its reduced bond buying program for these bonds due to the current market crash. Most people agree that slowing down the pace of bond purchases may alleviate market pressure as debt issues are increasingly being addressed. The recent statement by the Japanese Prime Minister that his fiscal situation is "worse than Greece" undoubtedly exacerbates market concerns. Some people argue that these drastic fluctuations could trigger a chain reaction risk and affect global markets, as they could prompt Japanese investors to withdraw their funds domestically. The Bank of Japan will review its quantitative tightening plan at its next policy meeting on June 16-17. If the market starts to see the central bank taking certain intervention measures or releasing signals to reduce its bond buying program, it may put pressure on the yen exchange rate.