Japan holds roughly $1.2 trillion in U.S. Treasuries, making it the largest foreign creditor of the U.S. government. For decades, near-zero domestic interest rates pushed Japanese savings abroad, creating a large, stable, longduration investor base that helped anchor long-term yields well beyond Japan’s borders. That era is ending. With the Bank of Japan signaling further rate hikes, the 10-year Japanese government bond yield has risen to around 2.3%, near multidecade highs. Higher yields in Japan’s domestic bond market are weakening the incentive for Japanese investors to continue buying U.S. Treasuries. Recent ... (full story)