BOJ Loosens Grip: Biggest Selloff in 25 Years Hits Japan Bonds

Amidst a fragile economy, Japan’s government bonds experienced their most severe quarterly selloff in over two decades, plunging 3% in Q3. This downturn underscores the market’s heavy dependence on the central bank’s actions. With rising speculation of the Bank of Japan terminating its negative-rate policy, Japan’s looming debt crisis becomes increasingly worrisome.