Japan’s bond market has become highly volatile, prompting traders to flock to the Singapore Exchange for its Japanese Government Bond futures contracts. Long-dated bond yields have reached unprecedented levels, with the 30-year hitting around 3.92% and the 40-year reaching approximately 4.24%, while the 10-year stands at 2.38%. Political developments, including snap election announcements, have amplified fiscal policy uncertainty. SGX provides essential liquidity outside Tokyo trading hours, enabling global macro funds and relative-value traders to manage their interest-rate risk. This shift could have implications for global bond markets, as Japan is the largest foreign holder of US Treasuries.
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