🚨 MARKET ALERT | Japan Rate Shock Incoming 🇯🇵💥

Bank of America signals the Bank of Japan may hike rates to 1.00% in April — a level not seen since the mid-1990s.

📌 Why it matters:

• Japan is a cheap-money hub & major global holder

• Last time rates hit this zone:

 • 1994: “Great Bond Massacre” wiped $1.5T from bonds

 • USD/JPY collapsed to ~79.75

 • Global stress stacked; cuts followed later

💡 Transmission Mechanism:

• Japan holds $1.2T in U.S. Treasuries

• Rate hike triggers:

 • Yen carry trades unwind

 • Funding costs spike

 • Bonds wobble

 • Risk assets reprice fast

⚠️ Bottom line:

Markets haven’t fully priced this yet.

Tightening in a fragile system = fast, global reactions.

🔍 Watch closely: JPY, funding markets, bonds. This is where the first warning lights flash.

#JapanRates #MacroAlert #usdjpy #BondMarket #GlobalFinance