🇯🇵 WARNING: JAPAN’S BOND MARKET IS FLASHING A MAJOR GLOBAL SIGNAL.
Foreign investors pulled ¥1.34 TRILLION from Japanese bonds last week.
Just one week earlier?
They had bought ¥2.24 TRILLION.
That’s a ¥3.6 TRILLION swing in foreign flows in just one week, according to Japan’s Ministry of Finance.
Japanese investors also sold ¥684.5 BILLION of foreign bonds during the same week.
And the timing matters.
Japan is the largest foreign holder of US Treasuries, with roughly $1.2 TRILLION in US government debt.
Meanwhile, US Treasuries just suffered their worst month in four years.
Japan’s 10-year yield is also hovering near its highest level since 1996.
And the yen remains weak around ¥157 per dollar.
This is bigger than Japan.
Japan sits at the center of global bond flows, carry trades and Treasury demand.
If Japanese capital continues shifting, the ripple effects could reach US bonds, currencies, equities and global liquidity.
The world is watching Japan’s bond market again.
#Japan #Bonds #Treasury #Yen #Markets
Foreign investors pulled ¥1.34 TRILLION from Japanese bonds last week.
Just one week earlier?
They had bought ¥2.24 TRILLION.
That’s a ¥3.6 TRILLION swing in foreign flows in just one week, according to Japan’s Ministry of Finance.
Japanese investors also sold ¥684.5 BILLION of foreign bonds during the same week.
And the timing matters.
Japan is the largest foreign holder of US Treasuries, with roughly $1.2 TRILLION in US government debt.
Meanwhile, US Treasuries just suffered their worst month in four years.
Japan’s 10-year yield is also hovering near its highest level since 1996.
And the yen remains weak around ¥157 per dollar.
This is bigger than Japan.
Japan sits at the center of global bond flows, carry trades and Treasury demand.
If Japanese capital continues shifting, the ripple effects could reach US bonds, currencies, equities and global liquidity.
The world is watching Japan’s bond market again.
#Japan #Bonds #Treasury #Yen #Markets
