Wall Street Breakfast Japanese bonds are spooking the globe
10 snips
Dec 1, 2025 Japanese bond yields are spiking to heights not seen since 2008, raising concerns about the carry-trade and potential market instability. As investors react, Bitcoin takes a tumble, highlighting the risks of yen-funded carry trades unwinding. Meanwhile, Databricks is eyeing a whopping $134 billion valuation as it prepares to raise $5 billion, facing margin pressures from AI implementation. In political talk, Kevin Hassett is emerging as a strong candidate for the next Fed chair, according to prediction markets.
AI Snips
Chapters
Transcript
Episode notes
Surging JGB Yields Threaten Global Risk Appetite
- Rapidly rising Japanese government bond yields reached levels not seen since 2008 and are affecting global markets.
- Higher JGB yields could reverse yen-funded carry trades and force repatriation of capital, pressuring risk assets.
BoJ Signal Drives Yield Repricing
- Bank of Japan Governor Kazuo Ueda signaled a likely rate increase this month, lifting short- and medium-term JGB yields.
- Rising domestic yields make Japanese institutions less inclined to buy overseas bonds, risking global capital flows reversal.
Cross-Asset Ripples And Bearish Warning
- Market moves showed immediate cross-asset effects: U.S. futures fell and Bitcoin dropped below $87,000.
- Societe Generale strategist Albert Edwards warns this surge could be the biggest threat to global markets since post-crisis yield suppression.