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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (13469)	5/23/2025 2:00:03 AM
From: elmatador	Respond to of 13775

Liquidity in the Japanese bond market has sunk to levels seen in the wake of the Lehman bankruptcy The chart shows an indicator of JGB liquidity, and this accords with anecdotal evidence of poor dealing conditions on JGB trading desks. Further, the BOJ survey of Japanese bond traders shows poorly functioning markets Japanese yields have been rising sharply and the curve bear steepening, with 30 and 40-year issues making new highs this week This potentially an issue for the rest of the world. Japan is the world's largest net creditor and has huge stock foreign assets Losses at home - perhaps amplified by the BOJ sitting on over half of JGB stock outstanding and therefore is a risk to financial stability - could provoke capital repatriation, leading to asset declines around the world. That's even more of a risk as it looks like inflation in Japan might become unanchored, given that inflation expectations have been persistently high for several years and are accelerating higher Illiquidity in JGBs is not only a problem for Japan linkedin.com