Japan’s 2-Year yield just jumped above 1.032 percent for the first time since 2008, and the signal is loud.
The pressure inside Japan’s bond market is finally breaking through decades of ultra-easy policy, and this kind of move rarely comes without deeper cracks forming underneath.
Rising short-term yields mean the market is no longer buying the Bank of Japan’s slow approach.
Liquidity is tightening, refinancing costs are climbing, and the old playbook of endless cheap capital is fading fast.
When the second largest bond market in the world starts flashing stress, global risk appetite usually follows.
This is one of those moments where the macro tide shifts quietly at first, then suddenly for everyone.
