Japan is once again talking about raising interest rates, but this time it may actually happen, unlike before when they were just making empty threats.

The yield on Japan's 2-year government bonds has broken 1% for the first time in 17 years, indicating that Japan has officially exited the zero interest rate era. This change is not just a simple interest rate hike by Japan, but rather a re-pricing of global capital flows.
Why is it important? Because the yen is the largest financing currency in the world. In the past, people were accustomed to borrowing money in low-interest yen and then investing it in global markets with higher returns - this is a typical carry trade.
When Japanese interest rates rise, this cheap funding channel starts to shrink. The result is that the global liquidity structure will be forced to adjust, and the volatility of risk assets will also increase.