Subprime governments?
Last week, Japan’s 20 year bond auction failed. https://www.ig.com/en/news-and-trade-ideas/japan-s-bond-market-turmoil–understanding-the-causes-and-global-250521 The pressure on JGBs has been going on for a while. Big JGB buyers like local insurance firms have reported big paper losses: https://www.insurancebusinessmag.com/asia/news/life-insurance/japanese-life-insurers-report-major-bond-valuation-losses-536925.aspx The government got yields to fall a bit by promising to issue fewer bonds, but if they do that, then won’t that … Read more