Hidden Forces Why Japan’s Elections Could Blow Up Global Bond Markets | Weston Nakamura
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Jul 24, 2025 
Weston Nakamura, a Tokyo-based financial analyst and creator of "Across the Spread," shares insights on Japan's recent elections and their potential to disrupt global bond markets. He discusses how a new opposition-led coalition might raise financing costs and spike political tensions worldwide. Nakamura highlights the unique challenges foreign analysts face in understanding Japan's insular market, emphasizing the risks tied to the aging population and rising debt. His analysis reveals the interconnectedness of Japan’s political landscape and global financial stability.
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Japan: Developed World's North Korea
- Japan resembles the developed world's North Korea due to its closed market and culture.
- Few English-speaking analysts can effectively communicate Japanese market nuances to the global audience.
JGB Market: World’s Most Dangerous
- The Japanese Government Bond (JGB) market is considered the world's most dangerous due to its enormous size and unique issues.
- Its instability affects global risk-free rates, influencing US Treasury yields and more.
Opposition’s Tax Cuts Risk Market
- Japan’s opposition parties propose significant consumption tax cuts to address high living costs.
- Such tax cuts could dangerously increase government debt and raise bond yields, disrupting markets globally.