Why did it crash today?
Japan bids farewell to zero interest rates: Is the 'liquidity inflection point' for risk assets here?
Japan's two-year government bond yield has risen to 1% for the first time since 2008; the five-year government bond yield increased by 3.5 basis points to 1.345%, the highest since June 2008; the 30-year government bond yield briefly touched 3.395%, setting a new historical high.
The significance of this matter is not just "the interest rate exceeds 1%", but:
The era of extreme easing in Japan over the past decade is being permanently written into history.
From 2010 to 2023, Japan's two-year government bond yield has almost always fluctuated between -0.2% and 0.1%. In other words, previously, money in Japan was free or even negative interest when borrowed.
