🚹 MARKET ALERT | Japan Rate Shock Incoming đŸ‡ŻđŸ‡”đŸ’„

Bank of America signals the Bank of Japan may hike rates to 1.00% in April — a level not seen since the mid-1990s.

📌 Why it matters:

‱ Japan is a cheap-money hub & major global holder

‱ Last time rates hit this zone:

 ‱ 1994: “Great Bond Massacre” wiped $1.5T from bonds

 ‱ USD/JPY collapsed to ~79.75

 ‱ Global stress stacked; cuts followed later

💡 Transmission Mechanism:

‱ Japan holds $1.2T in U.S. Treasuries

‱ Rate hike triggers:

 ‱ Yen carry trades unwind

 ‱ Funding costs spike

 ‱ Bonds wobble

 ‱ Risk assets reprice fast

⚠ Bottom line:

Markets haven’t fully priced this yet.

Tightening in a fragile system = fast, global reactions.

🔍 Watch closely: JPY, funding markets, bonds. This is where the first warning lights flash.

#JapanRates #MacroAlert #usdjpy #BondMarket #GlobalFinance