The spillover effects on global markets and risk assets

The sell-off of Japanese government bonds will not be an isolated event. It is likely to spread through three channels:
1️⃣ Increased yen volatility, affecting foreign exchange market stability
2️⃣ Passive rise in global bond yields
3️⃣ Compression of risk asset valuations
For the stock market, this impact is more structural rather than comprehensive; for crypto assets, it may cause short-term disruptions to risk appetite, but the medium- to long-term narrative impact is limited.
What truly needs attention is: if Japanese bond volatility persists, the global reliance on "low-cost financing" will be weakened, which is not friendly to highly leveraged assets.
#日本国债突现抛售风暴