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Message: <blockquote data-quote="Maddog" data-source="post: 479308" data-attributes="member: 5355"><h4>Japan’s Bond Market Meltdown Sends Shockwaves to U.S. Treasuries </h4>Japan’s government bond market suffered <a href="https://www.bloomberg.com/news/features/2026-01-25/japan-bond-market-crash-raises-alarm-for-global-interest-rates?srnd=homepage-americas" target="_blank">a historic rout this week, with 40-year yields surging past 4% for the first time since 2007.</a> The 30-year bond hit a record 3.9%. Markets are rejecting Prime Minister Sanae Takaichi’s massive stimulus plan, which includes consumption tax cuts with no clear funding source. The concern: Japan’s debt-to-GDP ratio already exceeds 260%. Investors fear the government will flood the market with new bond issuance just as the Bank of Japan raised rates to 0.75% — a 30-year high. This is being compared to the UK’s 2022 Liz Truss crisis. Here’s why it matters globally: Japan holds over $1 trillion in U.S. Treasuries, making it America’s largest foreign creditor. As Japanese yields spike, domestic insurers and banks are liquidating foreign holdings to chase higher returns at home. That forced selling pushed U.S. 10-year Treasury yields above 4.30% this week. For precious metals investors, this is textbook risk-off territory. When bond markets crack and sovereign debt concerns resurface, capital flows to assets outside the government debt system — like gold and silver.  The global financial stress is landing squarely on the Federal Reserve’s doorstep this week.</blockquote>

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