Debt Time Bomb: Japan’s 250% GDP Burden Sparks Global Yield Jitters

Japan’s debt load tops 250% of GDP and its long-term yields rise toward 3%, underscoring a fiscal crunch that global markets are watching as U.S. yields push above 5% amid inflation and lax fiscal policy. Interventions on both sides of the Pacific—yen stabilization and yield capping—signal concern, but a broader risk remains: rising borrowing costs, questions about central-bank independence, and the potential for a destabilizing unwind of carry trades that could reshape the global financial landscape.