For years, global markets benefited from a silent advantage 🚨

Japan exported liquidity

Capital was raised cheaply in yen and deployed elsewhere, inflating returns across risk assets.

That mechanism is now breaking.

Japan’s monetary stance is no longer an outlier:

- Policy rate now sits at 0.75%, a level unseen since the mid-90s

- The 10Y JGB at 1.96% signals a regime shift in domestic yields

- Roughly $534B in ETF exposure faces long-duration rebalancing

- Japan still anchors global bond markets as the top foreign U.S. Treasury holder

This is not a cosmetic adjustment.

It’s a structural reset.