Beyond Hormuz and Oil at $120: Why Rising Japanese Bond Yields Are the Real Market Threat

BitcoinWorld Beyond Hormuz and Oil at $120: Why Rising Japanese Bond Yields Are the Real Market Threat The most significant threat to global financial stability in the current quarter is not a blockade of the Strait of Hormuz or a spike in crude oil prices to $120 per barrel.

It is the persistent and unexpected rise in Japanese government bond (JGB) yields, a development that is reshaping capital flows and exposing deep vulnerabilities in the world’s third-largest economy.

The Mechanics of the Bond Market Shock For decades, Japanese bonds have served as a global anchor for low interest rates and a safe haven for international capital. That anchor is now dragging.

As of early 2026, the yield on the benchmark 10-year JGB has climbed to levels not seen since the early 2000s, breaching the Bank of Japan’s (BOJ) implicit policy ceiling.