What happened to the Japanese bond market recently? The answer is: it has been sold off mercilessly.

First, let's look at the data—The yield on the 10-year Treasury bond soared to 1.87%, directly breaking the record since the 2008 financial crisis; the 30-year bond was even more dramatic, reaching a historical peak of 3.395%; even the 20-year bond was not to be outdone, climbing to 2.88%, a height not seen since June 1999.

The stock market here is not doing much better. The Nikkei 225 index plummeted 1.89% that day, closing at 49303.28 points, and investors are clearly in a panic.

The trigger behind it? The latest statement from Bank of Japan Governor Kazuo Ueda reveals key information: he plans to first raise interest rates to 0.75%, and then consider what to do next. This sounds mild, but the market has already begun to price in the future tightening cycle. Bond selling pressure and stock market pressure indicate that the aftershocks of Japan's policy shift may have just begun.