Japan Faces Unprecedented Bond Market Turmoil Amid Rate Hikes

Japan is currently grappling with a significant upheaval within its bond market, facing the largest losses globally as the Bank of Japan (BOJ) implements a series of interest rate hikes. This shift marks a pivotal moment for a country that has maintained ultra-low interest rates for an extended period, primarily as a strategy to stimulate economic growth and ensure price stability. However, with inflation pressures mounting, the BOJ has begun to pivot, leading to a turbulent reaction in the financial markets.

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