🚨 THE FIRST MAJOR DOMINO MAY BE ABOUT TO FALL
🇯🇵 The Bank of Japan is reportedly considering slowing or ending parts of its quantitative tightening (QT) program next year as bond market volatility intensifies.
⚠️ Japanese bond yields recently surged to multi-decade highs, creating stress across: ▪️ Government debt markets
▪️ Banks
▪️ Pension funds
▪️ Global liquidity conditions
And historically, what comes AFTER QT?
💴 QE. 💴 Liquidity injections. 💴 Money printing.
If Japan pivots back toward easing: ▪️ Bond yields could fall
▪️ The yen carry trade could return
▪️ Global liquidity could surge again
▪️ Risk assets may explode higher
Japan has historically been one of the world’s largest sources of cheap global liquidity.
That is why so many traders are watching the BOJ right now.