#JapanBondMarketSell-Off 🇯🇵 Japan Bond Sell-Off: A Local Shock or Global Risk Signal?
Japan’s bond market just delivered a major warning shot. 30-year and 40-year JGB yields jumped over 25 bps, with the 40Y yield breaking above 4% for the first time ever, following plans to end fiscal tightening and ramp up government spending. This move has already started rippling through global markets.
What Triggered the Sell-Off?
The catalyst wasn’t inflation data — it was fiscal credibility risk:
A snap election and proposals for large stimulus and tax suspensions raised fears of heavier debt issuanc