At the moment there is rather a public spat between China and Japan. In one sense this is sabre rattling by the new Sanae Takaichi administration which knows it will be popular with its core vote. But it brings to mind a different challenge between these two countries and let me illustrate by returning to my theme of last Wednesday which was Japanese interest-rates. Japan’s 10–year government bond yield rose to 1.72%, reaching a peak not seen since June 2008. ( @FirstSquawk) As you can see Japanese government bond yields keep rising posing all sorts of questions as for example the proposed stimulus package gets ever ... (full story)