🚨BIG WARNING: THE JAPANESE BOND MARKET IS BREAKING Just today, Japan's 2Y and 5Y bond yields have hit a new ATH. And this is something that could crash the markets. Let me explain to you why. For decades, Japan has been a cheap source of borrowing for global investors. This started to change in 2024 when the BOJ did its first rate hike. The reason was inflation moving higher, and now the situation is about to get worse. The world economy is facing an energy crisis similar to the 1970s. Prices have started to surge, while supply disruption is still continuing. This means inflation is about to run rampant, and this calls for more tightening. But there's one problem. The global economy is already weak, and any tightening will break everything. In the case of Japan, any further rate hike from the BOJ will make the Yen carry trade worse. Investors will be forced to sell their assets and repay the debt that they took at low interest rates. And this history supports this. In Q1 2024, the BOJ hiked rates, and markets dumped. In Q1 2025, the BOJ hiked rates, and markets dumped. In Q4 2025, the BOJ hiked rates, and markets dumped. This means if another rate hike happens, a dump will most likely happen next.(Crypto Rover)