Japan's 30-Year Bond Yield Shock: Global Markets Brace for Impact, India Included

• Japan's 10-year government bond yield hit 2.125%, its highest since February 1999, signaling a major shift from decades of low-interest rates.
• The 2-year JGB yield also surged to 1.195%, a level not seen since August 1996, indicating market anticipation of further rate hikes.
• The Bank of Japan (BOJ) recently raised its policy rate, and a weak yen coupled with rising inflation is pressuring the central bank for more action.
• Rising yields in Japan could reverse the "carry trade," where Japanese investors borrowed cheap money to invest globally, potentially impacting fund flows worldwide.
• Emerging markets like India face potential pressure on bond yields, the rupee, and the stock market as Japanese capital may flow back home.

Why It Matters: Japan's bond yield surge after 30 years signals a global financial shift, impacting markets from US to India.