Weston Nakamura has classified the 40-year Japanese Government Bond (JGB) market as dangerously influential due to its size and investor ignorance, which could lead to global financial contagion.
Despite Japan’s 250% debt-to-GDP ratio, JGB yields continually lag behind U.S. Treasuries, creating significant risks that could destabilize global markets.
Nakamura advises investors to remain vigilant regarding JGBs as their movements increasingly affect U.S. Treasury yields, emphasizing that neglecting this market can be perilous.
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