apan’s Bond Market Is Flashing Alarms – Carry Trade at Risk?🚨 Japan just witnessed its weakest 20-Year Government Bond auction since 1987, triggering a spike in long-dated yields:
📉 Bid-to-cover ratio at lowest since 2012
📉 Tail (spread between avg. & lowest accepted bid) was massive
📈 40Y JGB yield hit all-time highs
📈 30Y at highest since it was introduced in 1999
📈 20Y at highest level since 2000
This is a BIBLICAL move in the JGB complex.
📌 The implications?
Japan’s carry trade—a pillar of global liquidity—could be under pressure
Global bond markets may reprioritize risk
BoJ is walking a tightrope: intervene now or risk a credit crunch later?
