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Japan Bond Market Shock: A Liquidity Event With Global Consequences
This was not a normal sell-off — it was a liquidity breakdown.
📌 What happened?
Around Jan 20–21, buyers vanished.
JGB prices collapsed.
Liquidity hit record-worst levels.
Yields surged to 3.9% (30-year) — a 27-year high.
📉 Global impact:
Risk assets dumped.
Volatility spiked.
Crypto got crushed — $1.8B liquidated in 48 hours.
⚠️ Why it matters:
Japan has been the world’s liquidity engine.
Now long-term yields are rising, signaling debt sustainability concerns and carry-trade unwind.
🎯 Strategic takeaway:
This is a regime shift, not a headline.
When bond liquidity breaks, leverage becomes fragile and risk gets repriced.
#JapanBondMarket #JGB #BOJ #Macro #Crypto