The recent sharp adjustments in the global markets may have their roots elsewhere. Market analysts point out that the Japanese 10-year government bond has experienced a rare 6 standard deviation fluctuation within the past 48 hours — a typical signal of market abnormality.

What does this mean? As a benchmark for the global risk-free rate, Japanese bonds, once out of control, can trigger immediate chain reactions. Liquidity suddenly tightens, and funding conditions become sharply strained. As a result, cryptocurrencies and US stocks are among the first to be impacted, becoming the assets most affected by this wave of adjustment.

Such macro-level fluctuations are often overlooked by investors, but in reality, they influence the overall market risk sentiment and asset allocation. It is worth continuously monitoring the movement of Japanese bonds for its impact on subsequent market developments.