🚨 The last time this happened, the Nikkei 225 index dropped 12% in a single day, and Bitcoin fell 20%. Japan seems to be caught in a cycle: to support the yen, the Bank of Japan sells dollars. Selling dollars → liquidity tightens. Liquidity tightening → bonds come under pressure. Bond yields have risen to the highest since 1999. Higher yields → further pressure on the yen. A vicious cycle. 2024

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