🚨 JAPAN IS ABOUT TO MAKE THE GLOBAL DEBT CRISIS MUCH WORSE. Japanese investors are dumping foreign bonds at their fastest sustained pace in 4 years. They have sold foreign bonds for 5 straight weeks, their longest selling streak since 2022. In just 5 weeks, they sold ¥3.43 TRILLION ($21.7 BILLION) in foreign long-term bonds. Total net sales this year have reached ¥5.18 TRILLION ($32.8 BILLION), the highest for this period since 2022. Japan has also become a net seller of overseas securities, with estimated 12-month net sales of ¥4.5 TRILLION. The reason is simple: Japan's 10-year bond yield has jumped more than 80 basis points this year, making domestic bonds more attractive. Japanese life insurers alone manage around $2.5 TRILLION, with roughly 25% invested overseas. And this is where the danger for global markets becomes serious. If Japanese investors continue selling foreign bonds and bring more money home, countries like the U.S. could face weaker demand for their government debt. That could force bond yields higher at a time when governments are already struggling with massive debt and expensive borrowing costs. Higher yields would make refinancing debt even more expensive, increase interest payments and put additional pressure on government budgets. It could also push mortgage rates and corporate borrowing costs higher, hurting businesses, consumers and the stock market. Japan doesn't need to sell everything to create a problem. Even a sustained reduction in foreign bond purchases could add serious pressure to global debt markets.