🚨 #Market Alert 🚨
🇯🇵 Japan’s long-term government bond yields have climbed to nearly 3.1%, a major shift after many years of ultra-low rates under the Bank of Japan. This move suggests the yen-funded carry trade is reversing, as borrowing cheaply in yen is no longer as attractive.
As capital starts moving back toward Japan, global liquidity may tighten, which often adds pressure to international markets. Such changes are being closely monitored by global leaders, since liquidity shifts can quickly affect U.S. markets and broader risk assets.
If yields continue rising, renewed volatility across global markets should not be ruled out.
