"Japan's Financial Markets Face $3 Trillion Threat with New BOJ Governor Ueda"

1 min read
Source: Yahoo Finance
TL;DR

The Bank of Japan's decade-long policy of ultra-low interest rates and bond-buying has led to Japanese investors owning over two-thirds of the country's economy in offshore investments, including US government bonds and European power stations. However, with a new governor, Kazuo Ueda, set to take over, the policy is likely to be dismantled, leading to a flow reversal that could send shockwaves through global financial markets. The shift is already underway, with Japanese investors selling a record amount of overseas debt last year as local yields rose on speculation that the BOJ would normalize policy.

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