
Japan’s 10-year government bond yield soared above 1.59% on Tuesday, reaching its highest level since 2008, as markets price in potential fiscal stimulus ahead of the July 20 Upper House election. The surge comes despite the Ministry of Finance reducing super-long bond issuances, signaling strong upward pressure on shorter-term rates.
What Happened: Lawrence McDonald, founder of the Bear Traps Report, highlighted the yield surge and warned that Japan’s role as the “planet Earth’s bond yield anchor for decades” is ending.