🇯🇵 Japan’s 10Y Yield Breaks 2% — A Historic Shift After 25 Years
Something major just changed in global markets.
Japan’s benchmark 10-year JGB yield has surged to 2.024%, a level not seen since 1999. This move officially marks the end of Japan’s decades-long “lower-for-longer” interest rate era — and the ripple effects could be massive.
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🔥 What Triggered the Move?
The jump follows:
A decisive BOJ rate hike to 0.75%
A record-sized national budget
Persistent inflation refusing to cool
Together, this created a perfect storm where investors finally repriced Japanese bonds for a higher-rate future.
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🌍 Why This Is a Big Deal
1️⃣ Global Capital Rotation Japan is one of the world’s largest creditors. As domestic yields rise, capital parked in U.S. and European markets may start flowing back home — potentially draining liquidity elsewhere.
2️⃣ Japan’s Debt Pressure With a debt-to-GDP ratio above 250%, even small yield increases dramatically raise debt-servicing costs. This makes future policy decisions extremely sensitive.
3️⃣ Real Impact on Consumers For the first time in decades:
Mortgage rates are rising
Corporate borrowing is getting more expensive
Cheap money is no longer guaranteed
