DugandRupe on Nostr: Japan feels like a ticking time bomb, 10y yield on a stairway to heaven, highest for ...

Japan feels like a ticking time bomb, 10y yield on a stairway to heaven, highest for 25y, desperately trying to find a true rate more similar to those around the world. BoJ continually makes intervening to keep rates low, but by doing this they are pushing the problem further into the future.

Then as currency value slides, risks of import price increases create massive inflationary risks.

Bond rates continue to rise, while 30y debt may be locked in, these increases will gradually notch up government interest expenditure, until that eventually pops and bankrupts the government, bonds start getting sold, even if it is the sensible options and all bests could be off.

As Robin Brooks says, “Japan in crisis”

https://open.substack.com/pub/robinjbrooks/p/japan-in-crisis?r=gnhl2&utm_medium=ios