Market monetarist Lars Christensen gives an insight into rising Japanese (JGB) bond yields:
…..the markets do not think that the Japanese government is about to go bankrupt. In fact completely in parallel with the increase in inflation expectations the markets’ perception of the Japanese government’s default risk have decreased significantly. Hence, the 5-year Credit Default Swap on Japan has dropped from around 225bp in October last year just after Mr. Abe was elected Prime Minister to around 70bp today!
Read more at Two cheers for higher Japanese bond yields in the spirit of Milton Friedman | The Market Monetarist.