Japanese long-term bond yields are exploding to levels unseen since decades, turning global markets into a ticking time bomb — and the US is right in the crosshairs.

40-year Japanese government bonds surged to a record 3.689% last week before settling slightly, but still nearly 70 basis points higher since January. With 30- and 20-year yields also spiking, borrowing costs are skyrocketing and investor demand for these ultra-long bonds is plummeting.

Why does this matter? Because Japan’s massive holdings of US stocks and debt are on the verge of a major shakeout. Analysts warn that if yields climb any higher, Japanese investors could pull a tsunami of capital out of the US — a move that could unleash global financial chaos.

Michael Gayed calls Japan a ā€œticking time bomb,ā€ while Societe Generale’s Albert Edwards predicts a ā€œglobal financial market Armageddon,ā€ with US tech stocks especially vulnerable.

The carry trade — where investors borrow cheap yen to fund higher-yielding foreign assets — is unraveling fast. Last August’s Bank of Japan rate hike sparked a brutal unwind that sent markets crashing. This could be just the start of a repeat.

The fallout won’t be slow or subtle. With trillions at stake, the global financial system braces for impact.

🚨 This is the storm warning every investor needs to hear.

Are you ready?

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