Japan is entering a phase of policy schizophrenia, balance sheet tightening without rate hikes. Markets will punish that contradiction. Expect higher yields, volatility in the yen, and stress in equity markets until the BOJ capitulates. pic.twitter.com/AvNHiU0hmh
— Bobbidazzler (@DazzlerBob) September 19, 2025
When bond yields rise despite central bank rate cuts, it often signals market skepticism—expecting higher inflation, currency weakness, or policy reversal. In Japan’s case, this could pressure the yen further, fuel imported inflation, and force BOJ intervention or eventual hikes. Markets might see cuts as insufficient against fiscal pressures.
-Grok
Bond yields are doing brrr pic.twitter.com/Rsswiclpts
— Data Driven Stocks (@stockdatamarket) September 19, 2025