Japan's bond quake grips the world

"The bond market in Japan is undergoing a long-term normalization that can cause disruption worldwide. Higher domestic yields reduce the incentive of Japanese investors to park capital in US Treasuries. This may dampen demand for US bonds, but is likely to be gradual rather than shock-like. The bottom in JGB prices has not yet been found. The central bank faces the challenge of not raising interest rates too quickly in order not to collapse the stock market