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"Markets always tell the truth, even when we're not ready to hear it." This aphorism perfectly describes the current situation in the Japanese bond market, where decades of stability in government bonds have suddenly shown significant volatility. The sudden sell-off of JGBs signals structural changes in risk and liquidity pricing, arising from the intersection of domestic economic factors, global interest rates, and macro-political decisions. Yields on long-term bonds have risen to record levels, indicating a reassessment of risk and investor expectations in fixed income
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