The Japanese government bond market has recently experienced significant changes. The 40-year bond yield has broken the 4% threshold for the first time — the first time since 2007. In the short term, the 10-year yield rose 3 basis points to 2.3%, the highest since February 1999. More notably, the 20-year yield increased 4 basis points to 3.295%. Behind these series of data reflects signals of a shift in global central bank policies and capital reallocation. For investors focused on macroeconomic cycles, the rise in Japanese government bond yields usually indicates a change in capital flows — rising yields on traditional financial assets often impact the attractiveness of risk assets.