One of the world's biggest safe havens just wiped out a third of its value.

For decades Japanese Government Bonds were the bedrock of stability but underneath the surface a silent crash has been playing out.

While investors were distracted by the Fed, Japan's 7 to 10 year bonds collapsed 32% in USD terms over the last 7 years.

This is not just volatility. It is a structural break.
We are witnessing the end of the synchronized global market. Just look at the massive fracture in performance.

China is up 35%.
USA is up 13%.
Germany is down 8%.
Japan is down 32%.

In the 20th century bonds moved together. In the 21st century policy divergence picks the winners and the losers.

Japan chose yield curve control. The market chose to punish them for it.