#JapanBondMarketSellOff 🚨
Japan’s Government Bond Market Faces Turmoil — Global Ripples Expected
A sharp sell-off has hit Japanese Government Bonds (JGBs), marking a potential turning point for global markets. Key drivers:
1️⃣ Political & Fiscal Shock
Prime Minister Takaichi Sanae’s January 19 announcement of a snap election and a 2-year food tax suspension sparked fears of fiscal looseness and rising debt risk.
2️⃣ Structural Debt Concerns
Japan’s public debt-to-GDP exceeds 250%. Years of ultra-low rates masked underlying vulnerabilities. As BOJ moves away from Yield Curve Control, markets a