Japan’s Bond Market Collapse Triggers Systemic Financial Stress
Japan's sovereign debt crisis has entered uncharted territory as government bonds hemorrhage value with alarming speed. The market has silently shed 45% of its worth since 2019, with 30-year yields spiking 100 basis points in twelve months—a MOVE that's eviscerated institutional portfolios.
Four major life insurers saw unrealized losses on domestic bonds quadruple to $60 billion in Q1 2025. The Bank of Japan now shoulders $198 billion in paper losses on its balance sheet, triple its 2024 exposure. Debt-to-GDP has breached 260%, dwarfing America's ratio despite both nations pursuing aggressive deficit spending.