Japanese yields are going higher despite the massive amount of easing by the Japanese government.
Kyle Bass believes that this is because of something the Japanese government didn't foresee. He calls it the "rational investor paradox."
A rational investor who owns Japanese Government Bonds should sell these bonds and that is what they are doing. After all, if the Japanese government is going to kick start inflation, holding bonds isn't a great idea.
That means the Japanese government is going to need to increase the size of its easing policy to keep rates down.