The Japanese government bond (JGB) market is heating up, and some analysts are sounding alarms.
What Happened: With the yield on Japan’s 10-year JGB closing in on 1.25%, market observers are divided on the implications for global markets.
Peter Schiff, chief economist at Euro Pacific Capital, has a grim outlook: “Soon it will be 1.5% and then 2%. Once the yield moves above 2%, JGBs could crash, sending yields soaring. This will create a financial tsunami that will crash U.S. financial markets.”
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