Don’t just treat this as another macro news headline to scroll past.

What’s happening now is this—the Japanese government bond market, once globally recognized as the safest haven, is turning into the eye of the storm.

Here’s the data:
Foreign ownership has surged from 12% fifteen years ago to 65% now.

What does this mean?
The “last piece of the global financial system that would never fail” is starting to crack.

This isn’t just Japan’s problem.
It will transmit to:

• Global interest rate pricing
• Bond market liquidity
• Risk asset preferences
• Capital flow rhythms

Everyone is watching the Fed’s moves,
but the real game-changer is quietly unfolding on the other side of the Pacific.

**Why Have Japanese Government Bonds Suddenly Become a Global Risk Source?**

To put it simply, there are three main reasons:

**1. Influx of Foreign Capital, but It’s All ‘Hot Money’**

Nearly two-thirds of current trading volume is driven by overseas funds.
The so-called “stability” of Japanese bonds isn’t underpinned by domestic capital, but by a bunch of short-term players rapidly entering and exiting.

You know the nature of foreign capital:
Fast, aggressive, precise—and quick to exit.
Once market sentiment shifts, their retreat is faster than anyone else’s.

This isn’t a stable market,
it’s a liquidity time bomb that could go off at any moment.

**2. The Bank of Japan Has Pulled Back, The Safety Net Is Gone**

What has the Bank of Japan been doing for the past decade?
The world’s most aggressive, unlimited bond-buying machine.
They kept bond yields pinned down, and the whole world treated JGBs as...