Japan's 30-year bond yield just hit 4% for the first time since 1999.


This matters everywhere. Japan is the world's largest holder of US Treasuries. When Japanese yields rise, Japanese investors sell US bonds and bring money home. US yields go up. Global liquidity tightens.
It also means the yen carry trade gets squeezed. Trillions in global positions were funded by borrowing cheaply in Japan. That era is ending.
The Iran war is driving oil prices up. Oil is driving inflation. Inflation is forcing the Bank of Japan to raise rates it held near zero for decades.
A war in the Middle East is now tightening financial conditions in New York.
Everything is connected.
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