Core Viewpoint - Japan's government bonds are facing significant challenges, with rising yields and poor auction results raising concerns about fiscal sustainability, similar to the situation in Greece [1][3][4]. Group 1: Market Reactions - Japan's long-term government bond auction results have been disappointing, leading to record high yields, with the 20-year bond yield reaching its highest level since 2000 [2][3]. - The bid-to-cover ratio for the recent 20-year bond auction was only 2.5 times, the lowest since 2012, indicating weak investor demand [2]. - The overall debt-to-GDP ratio for Japan has surpassed 250%—263%, significantly higher than Greece's 180% during its debt crisis, intensifying market concerns [1][3]. Group 2: Central Bank Actions - The Bank of Japan is gradually reducing its bond purchases, aiming to lower the monthly purchase amount to around 3 trillion yen by early 2026, which raises concerns about finding alternative buyers [3][4]. - There is speculation that the Bank of Japan may need to adjust its Yield Curve Control (YCC) policy or intervene in the market to stabilize bond prices amid rising yields [4]. Group 3: Economic Sentiment - A recent survey indicated that nearly two-thirds of Japanese companies are urging the Bank of Japan to pause its interest rate hike plans, reflecting concerns over economic stability [5][6]. - The unexpected contraction of Japan's economy in the first quarter and uncertainties stemming from U.S. trade policies are contributing to the cautious sentiment among businesses [6].