All articles tagged with #japan bonds
Investors started 2026 amid a flurry of dramatic moves: natural gas futures jumped more than 60% in three days, silver topped $100 an ounce while gold neared $5,000, and the Russell 2000 outperformed the S&P 500 as Japanese 40-year bonds surged, signaling broad, volatile action across commodities, equities and debt markets.
The 'widow-maker' trade, a strategy of shorting Japanese government bonds, has become highly profitable as Japanese bonds have plummeted over 4% this year due to rising yields, inflation concerns, and fears of fiscal policy changes, making it one of the most lucrative bets in the global bond market.
Japan's Nikkei stock index hit a record high following the election of Sanae Takaichi, who is expected to pursue expansionist fiscal and monetary policies, leading to a weaker yen and a steepening yield curve in bonds, with market expectations of potential rate hikes by the Bank of Japan.
Japanese long-term bonds have sharply fallen, with yields rising due to concerns over fiscal policy, upcoming elections, and global market impacts, raising fears of increased government spending and debt costs.
Japan's bond market has experienced a surge in volatility, impacting global markets as rising yields in Japanese government bonds influence other sovereign debt markets worldwide, driven by the end of yield-curve control and increased global economic concerns.