!?️What is happening with the global government bond market?

Bond investors are in control of the financial markets - this is key to watch

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Japan's 40-year government bond yield has skyrocketed over the last 3 years and reached its highest level since its debut in 2007.

Furthermore, Japan’s 30-year bond yield has risen 50 basis points over the last 30 days and hit 3.0% for the first time since that maturity bond was first sold in 1999.

Long-term government bond yields have also increased in other markets, including the largest, the United States.

The 30-year Treasury yield has surged 30 basis points over the last 30 days and crossed above 5.0% for the first time since October 2023. This is also the second-highest level since August 2008.

A similar move has been seen in 30-year bond yields in the UK, Germany, Australia, and Canada.

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In other words, global investors are selling long-term government bonds in the world’s largest bond markets.

What are the major drivers behind this?

Will the bond market sell-off lead to stock market declines?

What can governments do to ease this?

What could be the central banks' potential actions to reverse the trend?

How could this impact major economies?

What if this gets out of control (or already is)?

Will this lead to financial institutions (e.g., banks) defaulting?

How significant is the risk for the financial market stability?

Is the carry trade unwind coming?

Carry trade unwind is still a major risk for global markets

The Bank of Japan has put itself into a corner after decades of monetary policy easing

globalmarketsinvestor.beehiiv.com/p/carry-trade-unwind-is-still-a-major

The piece below answers these bothersome questions.

THIS IS GETTING SERIOUS

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