🔥🔥🔥Keep an eye on this Friday! The Bank of Japan's interest rate hike may trigger a chain reaction, putting trillions in U.S. Treasury bonds at risk?
🚨This Friday, a call from Tokyo may cause Wall Street to lose sleep all night!
⚠️The Bank of Japan is about to raise interest rates, potentially reaching a 30-year high! The market bets on a 25 basis point hike to 0.75% this Friday, and Kazuo Ueda is more likely to signal "continued tightening." With rising inflation and increasing wages, the rate hike is imminent.
‼️But the real storm is on the horizon— the U.S.-Japan interest rate differential is narrowing sharply, putting arbitrage trades on the line! The "sure-win game" of investors borrowing cheap yen to buy U.S. bonds may come to an end. Currently, the 10-year U.S.-Japan government bond spread has narrowed to 2.2%, far below last year's 3.3%.
⚠️Even more frightening is that Japanese investors may withdraw hundreds of billions previously invested in U.S. bonds on a large scale. At a time when the U.S. deficit is high and the AI valuation bubble is fragile, capital outflows are like adding insult to injury!
🔥Nomura strategists warn: arbitrage trading is facing a "life-or-death moment." Bear Trap Report states bluntly: this collapse is inevitable.
⏰On Friday, a decision from Tokyo could ignite the global market! Are you ready?👁️
