Japanâs bond yields are rising like a rocket and I hope everyone is paying attention. For decades investors borrowed cheap money in Japan and invested it in higher return assets around the world. With Japanâs bond market worth roughly $11 trillion, this is a macro trend investors shouldnât ignore. $XEQT$GOVT$BND$BWX
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12 Comments
Ian S@ian_s ¡ 1mo
I am watching Satwinder! Thanks for sharing. đ Whatâs interesting is the yen weakness is persisting even as JGB yields climb. If the carry trade unwind was truly kicking in, Iâd expect the yen to start strengthening as capital flows home, but thatâs not happening yet. Worth watching for a sharp reversal in USD/JPY as the real tripwire here IMO, in addition to the rising yields as you point out. For context, August 2024 is a good example of rising yields, strengthening yen and a sharp reversal in USDJPY, triggered by a BOJ rate hike. Cheers
DbleTrble @nimble_minx ¡ 1mo
Beevis saysâŚnot much cheap money left in developed economies.
Punjabi Invester @punjabiinvester ¡ 1mo
Its always something with Japan.
Scott S@scottsinvesting ¡ 1mo
One of the more useful and important posts Iâve seen in a while Satwinder⌠North America bond activity is generally ignored by many if not most IMO, so you can almost be assured most have no idea whatâs happening in Japanâs market and the potential ramifications for equity and bond markets around the world, most notably in the U.S.. Thank you for sharing!!
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