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The yield on Japan's 10-year government bonds has risen to about 3.055%, reaching a new high since 1996. For those accustomed to Japan's zero interest rates, this figure even looks somewhat unfamiliar. The danger is not only that Japanese bondholders are losing money. Over the past few decades, many global trades have been based on a simple premise: financing with cheap yen to buy U.S. Treasuries, U.S. stocks, or other high-yield assets. When Japanese interest rates rise and the yen may rebound, the profits from this trade thin out, and some funds can only reduce positions and return home. This is also why bond volatility in Tokyo can transmit to New York. Japanese institutions are important global buyers of overseas assets; when domestic bonds finally offer decent yields, their motivation to continue bearing currency risk and traveling abroad to buy bonds decreases. The U.S. and Europe, wanting to maintain low financing costs, will also lose a stable buyer. Normalization of Japanese interest rates sounds like a domestic policy but is actually tugging at global capital flows. When the faucet is turned down just a bit, highly leveraged assets far away may be the first to feel thirsty. #日本10年期国债收益率创30年新高