#JapanBondMarketSell-Off

The recent sharp sell-off in Japan's bond market is shaking global financial balances! 📉🇯🇵
Yesterday, record-high selling was seen in Japanese government bonds (JGB), especially long-term ones. The 40-year bond yield exceeded 4% for the first time, reaching its highest level since 2007, while 30 and 20-year yields jumped by more than 25 basis points. This movement stemmed from Prime Minister Sanae Takaichi's promise to suspend the food consumption tax for two years and increased borrowing concerns following expansionary fiscal policies. Ahead of the snap election (February 8), markets showed that Japan's enormous debt burden (approximately 250% of GDP) was reducing its tolerance for such measures.
In the last 24 hours, however, there has been a slight recovery: after Finance Minister Satsuki Katayama called for "market calm," the 40-year yield fell by 11-22 basis points. However, the global impact continues – US 30-year Treasury yields tested around 4.9%, and there were also increases in the UK and Canada. This is like a "bond vigilante" warning for indebted countries: markets can react quickly if fiscal discipline is lost. At Gate.io, we closely monitor such macro events. As volatility increases, the search for safe havens may strengthen the shift towards gold and crypto assets.
Do you think this move by Japan will push global interest rates further, or will they stabilize with BoJ intervention? Share your opinions in the comments!