🚨 Why markets are dumping? 📍 Japan’s bond yields are surging to 2008 highs, signaling the BOJ may raise rates for the first time in years at its December 19 meeting. 📍 Japan was the world’s cheap-money engine. For decades, investors borrowed low-rate yen and poured it into global markets, fueling the carry trade. 📍 Now higher Japanese yields are pulling money back home, putting pressure on the long-running yen carry trade. 📍 Japan is adding more short-term debt issuance, pushing yields even higher and speeding up the capital shift back to Japan. 📍 A stronger yen is squeezing leveraged global positions, forcing investors to unwind trades and sell risk assets. 📍 Japan is the largest foreign holder of U.S. Treasuries. Any reduction in buying or selling directly impacts U.S. funding. 📍 This comes at the worst possible time for the U.S. America needs record borrowing to fund 1.8 trillion dollar deficits, and interest costs have already exceeded 1 trillion dollars a year. 📍 Meanwhile, the Federal Reserve has stepped back from buying Treasuries, and China continues to reduce its holdings. 📍 So two major buyers of U.S. debt, Japan and China, are stepping away just when America needs them most. 📍 Rising global yields are draining liquidity, triggering selling across equities, bonds, and crypto. Hope this helps you understand why markets are dumping. Keep an eye on the U.S. market opening at 7 PM IST. Further weakness in U.S. stocks can trigger more pain across global markets.(Crypto India)