Coin Bureau - Japan's Bond Market COLLAPSE [Your Portfolio at Risk]

"Three months into her term, Japan's Prime Minister Sanae Takaichi has dissolved parliament and called a snap election. Meanwhile, the bond market is melting down around her, and yields on 40-year government bonds just hit all-time highs.

What happens next could unwind the trillion-dollar trade that's been quietly propping up global liquidity for decades. Win or lose, Takaichi's gamble has already broken something in the Japanese financial system, and the cracks are starting to show up everywhere from Mumbai to Manhattan."

~ Coin Bureau

Japan is currently facing a significant bond market crisis and political upheaval as Prime Minister Sanae Takaichi has called for a snap election to secure a conservative mandate. The government is proposing a record-breaking budget and unfunded tax cuts to combat inflation, which has caused long-dated government bond yields to surge to all-time highs and triggered a sell-off by institutional investors. This instability threatens to dismantle the long-standing yen carry trade, leading to the repatriation of capital that could drain global liquidity and impact international markets from the United States to emerging economies. Consequently, the Bank of Japan is trapped in a difficult position, forced to choose between raising interest rates to protect the weakening yen or keeping borrowing costs low to prevent a sovereign debt crisis. Meanwhile, Takaichi's aggressive defense policies and deteriorating relations with China are further complicating the economic landscape, turning the upcoming election into a pivotal moment that could lead to the remilitarization of Japan or a broader financial meltdown.

~ TIMESTAMPS ~

0:00 Intro
0:58 Background
6:17 Realignment
8:31 The Budget Bomb
12:13 Revolting Bondholders
14:27 Carry Trade Countdown
17:38 Poking the Bear

Source - Coin Bureau Finance: https://www.youtube.com/watch?v=swXv1viIoSc

Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.