Arthur Hayes: Rising Japanese Government Bond Yields May Weaken Japanese Capital Support for U.S. Treasuries

Odaily News Arthur Hayes published an article pointing out that Japan's second-largest bank plans to significantly increase its holdings of Japanese Government Bonds (JGBs) after the yield volatility subsides. He stated that as JGB yields rise, Japanese investors may become more inclined to allocate funds to the domestic market, thereby reducing investment in U.S. Treasuries. This would affect Japan's ability to continue providing financing support for the "Pax Americana."