Recently, Japan's economic situation has become quite interesting — government bond yields have risen above 2.10%, and the yen has depreciated to the 150 level against the US dollar, with two forces colliding.

It seems contradictory, right? Higher bond yields should attract capital inflows, but the weak yen is operating in the opposite direction. As a result, the policy objectives of the Japanese government and the central bank are being torn apart by these two market forces — one trying to stabilize the exchange rate, while the other cannot control the soaring bond yields.

This situation has a noticeable upward impact on the volatility of the global financial markets, especially during periods when emerging markets and crypto assets perform in correlation with traditional financial trends. Such macroeconomic dilemmas often trigger liquidity reallocation. It is worth paying close attention to Japan's next policy moves.