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By Tim Seymour

It's hard to feel good about the level of movement we have seen in Japan relative to itself. Sure, we've only seen a 25-basis-point move in the Japanese 10-year JGBs (Japanese government bonds), but this is from 0.60% yield to 0.85% yield and it happened in three days. This is a 40% move higher in yields for people who are investing in JGBs and for a government that is funding these instruments. What does it tell you about appetite for the world's second-largest bond market?

The economics will be very dangerous if they can't keep yields down. Japanese (EWJ) corporates are complaining about the import costs of their manufacturing. Fujitsu (OTC:FJTSF) and Canon (CAJ) were on the tape talking about the impact of the weaker yen (FXY) on their profitability. There is no free lunch, so it's time to squirrel away your snacks.

Source: Hard To Get Warm And Fuzzy About Japan At These Levels