Tomorrow, the BoJ is set to do another 25bps rate hike.

This will put Japan's interest rate at its highest level in 30 years, at 1%.
Here's the thing, it's more than just the economy slowing down and domestic credit getting more expensive.
For years, Japan has been the world's source for cheap funding, with a 0% interest rate.
Investors leveraged this and borrowed heavily, basically for free.
That money was then deployed into other countries with higher yields. This is known as the carry trade.
One of those countries is the US, which is why Japan is the biggest US debt holder in the world.
Now, what happens when borrowing from Japan is no longer free, and domestic markets start offering climbing yields?
Outflows. Known as the carry trade unwind.
This will spark sell-offs in bonds and risky assets.
We're witnessing a global financial structural shift right now.