Japan's 10-year government bond yield has reached a new high since the 2008 financial crisis! The warning line is at 2%, and once it breaks, it signals the end of the low-interest-rate era, ushering in a chaotic time of high interest rates + high asset pricing + high inflation! For decades, Japan has been the "extreme representative" of negative and low-interest-rate policies globally. The 10-year government bond yield has long hovered around 0%, with the underlying logic being: ✅ Deflation + Aging Population ✅ Central Bank's unlimited bond purchases (YCC: Yield Curve Control) ✅ Yen assets treated as a "free funding pool," widely used for global arbitrage (carry trade). Now that the yield has soared to 1.6%, it indicates a significant drop in bond prices and a rise in yields, prompting some to start selling Japanese government bonds. In the short term, the market may be testing whether the Bank of Japan dares to control the bond market without limits. If it breaks 2%, it would mean a formal battle between the market and the Bank of Japan. For many years, Japanese institutions (like life insurance and pension funds) have lent money globally (to U.S. bonds, European bonds, and even U.S. stocks) due to low domestic yields. Now, if JP10Y can offer a yield of 1.6%-2%, it creates an opportunity to "make money while lying down": 1️⃣ Japanese funds may sell U.S. bonds, European bonds, and foreign stocks → Reinvest in Japanese government bonds 2️⃣ U.S. bonds, European bonds, and risk assets may come under pressure due to reduced liquidity 3️⃣ If the Federal Reserve does not lower interest rates quickly, the pressure will increase. The awakening of the Japanese bond market is like a "debt Godzilla" that is stirring; this is not just a matter for Japan but also a signal for the global repricing of interest rates and capital structure. Caution is advised ⚠️