🚨 Macro Alert: Japan’s Bond Market Is the Real Story ⚡️
Everyone’s focused on Trump’s EU tariff headlines — but the real pressure point right now is Japan.
🇯🇵 What’s happening in Japan?
• Japanese government bonds just saw heavy selling
• Yields spiked sharply in response
• Trigger: New PM Sanae Takaichi signaling aggressive fiscal expansion
She’s outlined:
• Large-scale government spending
• Tax cuts
• Fiscal stimulus
But investors are uneasy — no clear plan on how it’s funded.
⚠️ Why this matters globally
Bond stress doesn’t stay local.
• Rising JGB yields pushed global yields higher
• U.S. 10-year yields moved up in response
• This feeds directly into risk asset pricing worldwide
📊 Key level to watch
As long as U.S. 10Y stays below 4.5%, risk assets should remain relatively supported. A break above changes the game.
📌 Big picture
This isn’t about tariffs.
It’s about sovereign debt confidence, fiscal credibility, and yield pressure spreading across markets.
Stay alert. Bond markets move first.
