Japan Just Exposed a Weak Global Economy

Japan Just Exposed a Weak Global Economy

The global economy isn’t as healthy as it looks and a major warning sign just flashed in Japan. You’ve been paying close attention to some dramatic bond yield movements in Japan. Big moves in Japan bond markets today. So there’s been big sellings. So one comment from the Bank of Japan that hinted at a hike rate sent bond markets sliding from Tokyo to New York to London. Even a hint at a rate hike here is a big deal because Japan has kept rates near zero for decades. And if Japan thinks it needs to tighten, it means money has been too cheap for too long. And raising rates is the only way to cool inflation and stabilize a massive debt system that’s finally showing strain. Japanese yields jumped to their highest level in 17 years on the news. And that pulled global yields higher, including the US 10-year, the benchmark that prices everything from mortgages to corporate debt. When safer bonds start paying more, investors dump risk. And that’s why Bitcoin and tech stocks slid, too. Higher yields mean tighter credit, more expensive borrowing, and less breathing room for governments, companies, and households already stretched thin. Because when the world’s last zerorate economy starts tightening, it shows just how fragile the whole system is. Follow for more news without the bias or spin.

Japan’s central bank signaled it may raise rates after decades of near-zero borrowing costs — and the reaction exposed deeper cracks in the global economy.

Bond yields jumped across the U.S. and Europe, crypto sold off, and investors rushed back into safer assets.

A shift in Japan affects borrowing, debt, and consumer costs around the world.

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