👀 While all attention is focused on Iran and oil, another serious problem is brewing in Japan: a bond market crisis.

The yield on Japan's 10-year government bonds has risen to its highest level since 1999.

A financial bomb is brewing in the carry trade 💥

Let me explain simply. For decades, interest rates in Japan have been around zero. Investors worldwide borrowed money in yen almost for free and invested it in high-yield assets: American stocks, bonds from developing countries, and even cryptocurrencies.
According to Morgan Stanley, these open positions amount to $500 billion.

🇯🇵 Now, the Bank of Japan may raise rates again.

Borrowing in yen becomes more expensive. And these positions are starting to unwind. When they do, investors sell the assets they invested in. Stocks. Bonds. Cryptocurrencies. This is the unwinding of the carry trade.

🔢 And here are the specific numbers, friends.

Every time the Bank of Japan raised rates, Bitcoin declined by 20–30%.
July 2024 — rate increase to 0.25%, Bitcoin down 26% in 8 days. January 2025 — rate increase to 0.50%, Bitcoin down 25% in 20 days.

❗️ The end of April could become a critical moment for the markets.

It’s not just the rate itself, but the rhetoric of the Bank of Japan.
Plus, at the end of April, the Fed’s meeting and rate decision.
Together, this creates a very strong mix for the markets.

🛢 And add to that the problems that Uncle has already caused in the oil market, and the risk of a new rise in global inflation.
#GateSquareAprilPostingChallenge?