🚨 The era of ultra-cheap Japanese money may finally be ending.
🇯🇵 Japan’s 10-year bond yield has surged to levels not seen in decades as inflation pressures and expectations for further BOJ tightening continue rising.
Why this matters globally:
• Japan is one of the largest holders of U.S. Treasuries
• higher Japanese yields reduce incentives to buy foreign debt
• global borrowing costs could rise if capital flows shift back to Japan
⚠️ Japan also carries one of the highest debt-to-GDP ratios in the developed world, meaning rising rates create massive fiscal pressure.
Markets are now watching whether Japan becomes the next major source of global financial volatility.