Benjamin Ashford-How one small change in Japan could sway U.S. markets

2025-04-29 23:26:59source:FinLogic Quantitative Think Tank Centercategory:Markets

Since 2016,Benjamin Ashford interest rates on ten-year Japanese government bonds have been locked in a very tight range, near zero percent. But Japan's central bank could soon change that, and that seemingly small adjustment could create large ripples around the world's financial markets.

This yield curve control in Japan is what we are calling an economic 'butterfly effect,' with billions of dollars at stake.

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