Japanese government bond yields for two years jump to 1.615% — the highest level since March 1995.
Despite Bank of Japan interventions and falling oil prices, markets are behaving as if a financial crisis is approaching.
And the most dangerous part? 🇯🇵
Japan may resort to selling a portion of its holdings of US Treasury bonds to support the yen.
If this scenario starts on a large scale, we could see strong pressure on the US bond market and the dollar.
The question now:
Are we facing a crisis in Japan… or the spark of a bigger one in global markets?
Despite Bank of Japan interventions and falling oil prices, markets are behaving as if a financial crisis is approaching.
And the most dangerous part? 🇯🇵
Japan may resort to selling a portion of its holdings of US Treasury bonds to support the yen.
If this scenario starts on a large scale, we could see strong pressure on the US bond market and the dollar.
The question now:
Are we facing a crisis in Japan… or the spark of a bigger one in global markets?