🇯🇵 JAPAN FIRES UP A NEW ALERT IN THE MARKETS
The yield on the 10-year Japanese government bond reached 3%, its highest level since 1996, in a move that reinforces pressure on global debt markets.
The rebound reflects a dangerous combination: inflation, rising energy costs, concern over public finances, and expectations of further rate hikes from the Bank of Japan. In addition, the market is preparing for a possible acceleration of monetary tightening in September.
For decades, Japan had been one of the major anchors of the global bond market. Now, the rise in its yields adds to the pressure on U.S. Treasuries and European debt, raising the cost of money worldwide.
⚠️ The message for investors is clear: the era of cheap money is facing a new challenge. And if yields continue to rise, the consequences could reach far beyond Japan.
The yield on the 10-year Japanese government bond reached 3%, its highest level since 1996, in a move that reinforces pressure on global debt markets.
The rebound reflects a dangerous combination: inflation, rising energy costs, concern over public finances, and expectations of further rate hikes from the Bank of Japan. In addition, the market is preparing for a possible acceleration of monetary tightening in September.
For decades, Japan had been one of the major anchors of the global bond market. Now, the rise in its yields adds to the pressure on U.S. Treasuries and European debt, raising the cost of money worldwide.
⚠️ The message for investors is clear: the era of cheap money is facing a new challenge. And if yields continue to rise, the consequences could reach far beyond Japan.
