When thinking about yields, it is a good idea to monitor the UK, France, and Japan, as they currently represent three notable points of fragility within the G7. Taking a closer look at Japan specifically, the national currency continues to struggle even with 10-year JGB yields approaching 3.10%, a peak not seen in three decades. Changes in the US bond sector rarely stay isolated domestically, and in a very similar way, the ongoing currency and bond tensions in Japan are creating global spillovers. If this financial environment drags on, there is a growing danger that the US Treasury market could eventually lose a highly dependable, long-term purchaser.

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