🚨 BREAKING NEWS:

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Japan is sending a serious warning signal to global markets. Liquidity in the system is drying up fast. Japan’s 30-year government bond yield just hit 3.5%, the highest level ever, as the Bank of Japan steps away from years of heavy stimulus. For a country that lived with near-zero rates for decades, this is a historic shift — and not a small one.

What makes this more shocking is the money data. Cash in circulation fell 4.9% in 2025, the first decline in 18 years. That means money is being pulled out of the system, not added. At the same time, Japan’s monetary base dropped to ¥594 trillion, falling below ¥600 trillion for the first time since 2020. This confirms one thing clearly: this is not talk — this is real tightening.

Tightening like this slows spending, raises borrowing costs, and puts pressure on growth. With debt levels already very high, Japan has little room for mistakes. The big question now is uncomfortable but unavoidable: does this lead to recession? Markets are watching closely, because when liquidity disappears this fast, the impact is usually felt sooner than people expect.