Today's market alert is here again. The turmoil in US Treasury bonds is not over, and now there's a new wave in Japanese bonds. This time, the Japanese bond auction has been dubbed an epic collapse by the media.

The bid-to-cover ratio for Japan's 20-year government bonds has dropped to 2.5 times, marking the worst auction since 2012, with a tail end difference of 1.14, the highest level since 1987.
The 10-year government bond yield soared to 1.525%, marking the highest level since the end of March;
The 20-year Treasury yield rose by 15 basis points to 2.611%, reaching its highest point since 2000.
The yield on the 30-year Treasury bond has risen to its highest level since its introduction in 1999;
The 40-year government bond yield surged 10 basis points to 3.591%, setting a new historical high.
Although Japan suspended its YCC policy last year, as a global low-interest-rate safe haven, people have long been accustomed to borrowing low-interest yen and then converting it into dollars to invest in the U.S. stock and bond markets for Carry Trade. Therefore, a reduction in the supply of low-interest Japanese government bonds may exert upward pressure on U.S. Treasury yields. If the Bank of Japan does not take timely measures to stabilize the market, it may not lead to a collapse similar to last year's 8.5 rate hike, but it will also exacerbate volatility.
The rise in Japanese bond yields this time may be due to two reasons,
1. Economic reasons: The market's real risk aversion sentiment or rising inflation expectations.
2. Political reasons: The Bank of Japan intends to exert pressure on the United States by reducing its purchases of Japanese government bonds in order to gain leverage in tariff negotiations regarding automobiles, threatening the U.S. to make concessions.
Currently, U.S. stock futures are down. Let's see how the market trends when U.S. stocks open tonight.