Rising JGB Yields Put Japan’s Debt Strategy and Global Markets at Risk

TLDR: Japan’s ¥1.3438 quadrillion debt load leaves its fiscal strategy increasingly exposed to rising JGB yields. Higher Japanese rates may support the yen but raise refinancing costs for banks, insurers, and finances. A stronger yen could unwind carry trades, forcing investors to sell foreign bonds, equities, and crypto. Japan’s $1.143 trillion Treasury position links rising [...]

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