'The Price Is Rice' - JGB Liquidity Crisis Is A Global Warning
Authored by Simon White, Bloomberg macro strategist,
Liquidity in the JGB market is deteriorating as heightened inflation expectations become entrenched, while disorderly rises in Japanese bond yields leave US and global assets exposed to drops in price.
Japan has a problem. Its long-bond yields have climbed sharply this week, reaching new highs in 30 and 40-year issues, with liquidity in the JGB market worsening significantly.