Since 2016, Japan offered negative to no interest on bonds, and Japanese people sacrifice by paying it. Why? Because Japan is an ethnostate and the money is used to subsidize the welfare state. So Japanese people are basically doing charity for their fellow Japanese by buying these bonds.
Recently, Japan actually increased the interest on these bonds slightly into positive rates for the 1st time since 2016. This caused a market reaction as traders sensing weakness began pressuring the bonds to go higher. Japan is now applying pressure in the other direction.
Since 2016, Japan offered negative to no interest on bonds, and Japanese people sacrifice by paying it. Why? Because Japan is an ethnostate and the money is used to subsidize the welfare state. So Japanese people are basically doing charity for their fellow Japanese by buying these bonds.
Recently, Japan actually increased the interest on these bonds slightly into positive rates for the 1st time since 2016. This caused a market reaction as traders sensing weakness began pressuring the bonds to go higher. Japan is now applying pressure in the other direction.