Global Markets Investor@GlobalMktObserv
🔴Japan's bond market, the world's 3rd largest, is BREAKING:
The 30-year Japanese government bond yield has breached 4% for the first time since its debut in 1999.
At the same time, the 20-year JGB yield has risen to 3.66%, its highest level since 1996.
The 40-year JGB yield has surged 4.24%, its highest level since its debut in 2007.
This comes as the war-driven surge in energy prices is stoking inflation concerns globally, while renewed fears over Japan's fiscal outlook are adding further upward pressure on yields.
Furthermore, the yen's continued weakness is compounding this dynamic, increasing import costs and reinforcing the case for the Bank of Japan to raise rates.
A sustained rise in Japanese yields risks prompting domestic investors to repatriate capital from global markets, potentially triggering a SELL-OFF across global bond and equity markets.
Japan's bond market is becoming a risk the entire world needs to watch.