Rising Yields in Japan Threaten Overseas Investments, Global Bond Markets
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Japan's ultra-low interest rates have spurred demand for foreign assets, creating a $269bn income surplus last year
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The gap between Japan and global bond yields now endangers Japanese overseas investors and foreign issuers alike
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Japanese life insurers are already dumping foreign bonds and may bring money home as domestic yields rise
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This could remove a huge source of demand for Western government and corporate bonds
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Whether the pain is felt by Japanese institutions or foreign bond issuers, it is likely to be significant