
Japanese government bond yields have jumped to levels not seen since the 1990s and the central bank is expected to tighten further, making domestic fixed income far more attractive. That shift could prompt Japanese investors, who hold roughly one trillion dollars in US Treasuries, to repatriate funds and sell US debt. Large-scale selling would add supply to global Treasuries, likely pushing US yields higher and amplifying recent bond-market volatility and equity weakness.
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