Catastrophe: Japan 30 Year Bond Hits 3.427%

• Catastrophe: Japan 30 Year Bond Hits 3.427%
  by https://halturnerradioshow.com/
  Something just shifted deep inside the global financial system — and almost no one is explaining what it means for you. Japan’s 30-Year LSEG Government Bond just hit a historic high yield of 3.427%. Worse, Japan’s 10-year government interest rate just spiked to 1.84%, the highest level since 2008, jumping more than 11% in a single day.
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  That doesn’t sound dramatic on the surface. It is.
  For 30 years, Japan was the quiet engine that kept the world’s debt machine running. Their interest rates were near zero. That meant banks, hedge funds, and governments could borrow cheap money from Japan and pour it into U.S. bonds, stocks, real estate, and everything else that now feels permanently expensive. That cheap money kept:
  • Mortgage rates lower
  • Stock markets higher
  • Government borrowing easier
  • Credit cheap and plentiful

  That era is now ending.
  Bank of Japan held interest rates near zero long after every other major country had already raised rates to fight inflation. They tried to hold the system together with money printing and artificial controls.
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  They can’t hold it anymore. Japan alone owns about $1.1 trillion of U.S. government debt. That makes them the largest foreign lender to the United States. But when interest rates at home suddenly become attractive again, that money is no longer guaranteed to stay in America.
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