Japanese government bond yields continue their sharp rise across the curve.
• 40Y → 4.11%
• 30Y → 3.85%
• 20Y → 3.49%
• 10Y → 2.58%
This is one of the most important macro developments right now. With Japan sitting at 236% debt-to-GDP, higher borrowing costs are becoming extremely expensive.
What do you think happens next — more BOJ intervention, yen weakness, or a real reckoning?
https://i.redd.it/y6vm9zvevu0h1.jpeg
Posted by metricshour
4 Comments
The last option.
West doesn’t have any markets to pillage (like in 1990s), and will resort to cannibalism. Japan was on the menu since 1980s, and there doesn’t seem to be anyone else.
*Japan’s bond market is really flashing red 40-year yields above 4% and 10-year at 2.6% show how inflation and BOJ policy shifts are shaking things up. Feels like a turning point after decades of ultra-low rates.*
Carry trade about to get margin called.
Nice knowing you all, IRS will take away my stuff soon