@memento-mori
🇯🇵 Japan Loses Status as the World’s Largest Creditor — for the First Time in 34 Years
Japan’s Ministry of Finance has officially confirmed the country is no longer the top global creditor.
🔻 One of the key reasons: a major decline in foreign asset holdings, especially U.S. government debt.
As bond yields rise, prices fall — and Japan’s portfolio has taken a hit.
What does this mean?
▪️ Japan may begin gradually reallocating capital out of U.S. treasuries.
▪️ This adds extra pressure on the U.S. bond market.
▪️ Which in turn creates more headaches for the Fed, already navigating inflation and market fragility.
📉 A potential new destabilizing factor for global financial markets.
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