🚨 THIS HAS NEVER HAPPENED BEFORE.
Look at Japanese government bonds right now: 10-YEAR: 2.39% 20-YEAR: 3.27% 30-YEAR: 3.68% 40-YEAR: 3.87% These are all-time highs across the curve. Japan — the world’s largest creditor nation — holds roughly $3.7 𝐓𝐑𝐈𝐋𝐋𝐈𝐎𝐍 in net foreign assets. Now add this: Swap markets are pricing nearly a 70% chance that Japan hikes rates to 1.00% by April. Read that again. If Japan reaches 1.00%, it signals the end of the global cheap-money hub. And that changes everything. For decades, Japan has been the funding engine. Investors borrowed ultra-cheap yen and deployed it into U.S. stocks, credit markets, tech, and crypto. That trade only works when money is cheap. When Japanese rates rise, that engine starts to stall. Even a small shift of that $3.7 𝐓𝐑𝐈𝐋𝐋𝐈𝐎𝐍 back into domestic assets forces selling somewhere else. Now connect the dots: China has already been reducing exposure to U.S. Treasuries. If Japan begins doing the same — even gradually — it becomes a real capital shift, not just headlines about de-dollarisation. And when the largest pools of capital stop supporting the dollar system the same way, markets don’t drift — they reprice. That’s why bonds matter first. Not because of “rate talk”, but because they determine where trillions of dollars flow. When that flow changes, liquidity tightens — and risk assets stop behaving normally. This is not a small move. This is how regime shifts begin. Quietly. In bonds. Before anyone looks up from the crypto chart. I’m watching this closely into April. Because this is exactly how major transitions start — slowly at first, then all at once.