Japan’s 30-year bond yield soared to 3.20%, the highest on record. Bond values have drastically fallen, losing 45% since 2019, raising concerns over the country’s fiscal management.
The Bank of Japan reported unrealized losses of $198 billion for Fiscal Year 2024, up from $66 billion the last year. With a debt-to-GDP ratio surpassing 260%, the situation poses risks to global bond markets.
As the bond market deteriorates, investors are moving towards hard assets like Bitcoin and gold, reflecting a growing lack of confidence in government bonds amidst rising inflation and economic instability.
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