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Tweeting about Japanese politics, LGBT rights, and social issues. Very international American who previously lived in Japan.
Feb 9 7 tweets 1 min read
Japan’s bond market, inflation, and PM Takaichi’s economics in a nutshell:

Japan has the world’s highest debt-to-GDP ratio and sustains it by continuously rolling debt through bond issuance, largely absorbed by domestic institutions. Rising yields mean investors demand higher compensation to lend. This puts Japan in a bind: cap yields and the yen weakens while inflation worsens; step back and yields spike, risking debt stress.