🚨 JAPAN IS ABOUT TO SHAKE THE U.S. DOLLAR 🚨
Markets are totally unprepared for what’s coming next week.
The Bank of Japan is abandoning decades of Yield Curve Control — that era is officially over.
Here’s what that means: to defend the yen and stabilize their bond market, Japan needs real domestic buyers for JGBs. The BoJ can’t do it alone anymore.
So Japanese institutions are forced to bring money home — selling foreign assets like:
• Stocks
• Bonds
• ETFs
And the biggest foreign asset they hold? U.S. Treasuries — over $1.1 TRILLION.
Those Treasuries were bought when yields were tiny, the yen was cheap, and carry trades ruled. That math no longer works.
Now the flow reverses: Japan sells Treasuries, capital comes home, and liquidity disappears from global markets.
What gets hit first?
• Global bond markets
• U.S. borrowing costs
• Risk assets everywhere
For decades, Japan exported capital and kept global yields low. Now that tide is turning, and when the world’s largest creditor pulls money back at scale, it never happens quietly.
I warned about Japan moving markets in 2025 — now the next shock is here.
