Japan's 10-year government bond yield just hit 2.995% — about to break 3.00% for the first time since 1996.
This is a massive deal. For decades, Japan was the poster child for zero rates and yield curve control. Now the BOJ is losing control of the curve, and bond vigilantes are waking up.
What happens when the world's biggest creditor nation can't suppress rates anymore?
🔹 Yen strengthens (bad for exporters)
🔹 JGB selling accelerates (funding costs spike)
🔹 Global liquidity tightens (Japan was the carry trade ATM)
🔹 U.S. Treasuries feel the heat (if Japan stops buying or starts selling)
This isn't just a Japan story. It's a global macro shift. Watch $DXY, $TLT, and anything levered to cheap yen funding.
This is a massive deal. For decades, Japan was the poster child for zero rates and yield curve control. Now the BOJ is losing control of the curve, and bond vigilantes are waking up.
What happens when the world's biggest creditor nation can't suppress rates anymore?
🔹 Yen strengthens (bad for exporters)
🔹 JGB selling accelerates (funding costs spike)
🔹 Global liquidity tightens (Japan was the carry trade ATM)
🔹 U.S. Treasuries feel the heat (if Japan stops buying or starts selling)
This isn't just a Japan story. It's a global macro shift. Watch $DXY, $TLT, and anything levered to cheap yen funding.