Catastrophe: Japan 30 Year Bond Hits 3.427%!

Date: December 3, 2025

Source: Hal Turner

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Something just shifted deep inside the global financial system — and almost no one is explaining what it means for you.

Japan's 30-Year LSEG Government Bond just hit a historic high yield of 3.427%.

Worse, Japan’s 10-year government interest rate just spiked to 1.84%, the highest level since 2008, jumping more than 11% in a single day. That doesn’t sound dramatic on the surface.

It is.

For 30 years, Japan was the quiet engine that kept the world’s debt machine running. Their interest rates were near zero. That meant banks, hedge funds, and governments could borrow cheap money from Japan and pour it into U.S. bonds, stocks, real estate, and everything else that now feels permanently expensive.

That cheap money kept:

• Mortgage rates lower

• Stock markets higher

• Government borrowing easier

• Credit cheap and plentiful

That era is now ending.

Bank of Japan held interest rates near zero long after every other major country had already raised rates to fight inflation. They tried to hold the system together with money printing and artificial controls.

They can’t hold it anymore.Japan alone owns about $1.1 trillion of U.S. government debt. That makes them the largest foreign lender to the United States. But when interest rates at home suddenly become attractive again, that money is no longer guaranteed to stay in America.

At the exact same time:

Federal Reserve is losing its ability to quietly support markets

• The U.S. Treasury must borrow record amounts of money to fund massive federal deficits

• The U.S. government now spends over $1 trillion every year just on interest

• And China — another major lender — is also pulling back

That means the people who used to finance America’s lifestyle are no longer willing to do it cheaply — or reliably.

When that happens, the costs don’t stay on Wall Street. They flow straight to:

• Higher mortgage rates

• Higher car payments

• Higher credit-card interest

• Falling retirement accounts

Rising food, energy, and insurance costs

More layoffs and business failures

For years, the system was built on a single assumption: Money would always stay cheap forever. That assumption is now breaking. This is not just a Japan story.

This is the story of how the entire debt-based global economy starts to strain under its own weight.

The long era of falling interest rates that shaped your job market, your home price, your 401(k), and your cost of living is over. Most people won’t feel it all at once. They’ll feel it through tighter credit, shrinking savings, rising bills, and a constant sense that their money just doesn’t stretch like it used to.

And by the time it becomes obvious to everyone —the damage will already be locked in.