Dashboard All Reports
Published: Jan 23, 2026
Last Updated: 2 hours ago
⚠️

Japan Hits The Kill Switch
On The Global Economy

Crisis Alert JGB Bonds • Global Impact

Analysis based on The Boring Currency video insights

Market Alert • Structural Shift Underway

What's Happening Now:

Japan's Bond Market Alert

  • Long-end JGB yields have spiked from near-zero to multi-decade highs
  • Cheap yen funding is tightening; volatility rising in 'safe' assets
  • Currency constraint: defending the yen vs suppressing yields

Key Metrics to Watch

JGB 10-Year Yield
~2.0%
↑ From near-zero levels
JGB 30-Year Yield
~4.0%
↑ Multi-decade high
JGB 40-Year Yield
>4.0%
↑ Record territory
USD/JPY
↑ Rising
Yen weakening pressure

Historical Context: Japan as Global Cheap Money

Timeline: The Era of Zero

1990s
Asset bubble collapse begins Japan's zero-rate era
2000s-2010s
Decades of near-0% rates and quantitative easing
2016
Bank of Japan implements Yield Curve Control (YCC)
2020-2024
Ultra-loose policy continues while global rates surge
2025-2026
Policy pivot: YCC abandoned, yields spike

The Cheap Money Machine

Ultra-Low Rates

For decades, Japan offered the cheapest borrowing costs globally

Global Carry Trade

Borrow yen cheaply → invest in higher-yielding global assets

Market Liquidity

Massive yen funding supported global risk assets for years

The Reversal

Now unwinding: carry trades closing, volatility surging

Complete Analysis - Full Presentation

Page 1 of --
100% Download PDF

Loading presentation...

Source: The Boring Currency video analysis | Published: January 23, 2026

Back to All Reports • Dashboard