Citi(US:C) Sou Hu Cai Jing·2026-01-21 08:44Group 1 - The core viewpoint of the report indicates that the volatility in the Japanese bond market may spill over into other markets, particularly the U.S. bond market, prompting investors to reduce risk across various asset classes [1] - Japanese 30-year and 40-year bond yields rose by over 25 basis points, reaching new highs, amid concerns about increased market volatility ahead of the upcoming Japanese House of Representatives election on February 8 [1] - Citigroup's report suggests that risk parity funds may need to sell off one-third of their current risk exposure, which could lead to a potential bond sell-off of up to $130 billion in the U.S. alone [1] Group 2 - U.S. Treasury Secretary has communicated with Japan's Finance Minister regarding the impact of Japanese bond market volatility on the U.S. bond market [1] - The volatility in the Japanese bond market has been rising since early last year, significantly affecting global markets, attributed to the Bank of Japan's decision to abandon its yield curve control policy and gradually reduce its bond purchases [1] - Concurrently, European entities, such as Denmark's "Academic Pension Fund," are planning to sell U.S. bonds valued at approximately $100 million in response to geopolitical tensions [1] Group 3 - International spot gold prices surpassed $4,880 per ounce on the 21st, marking a historic high amid significant fluctuations in multiple national bond markets [2]