Why Do Japan’s Market Meltdowns Cause Global Chaos?

There was a massive meltdown in Japan's government bond markets last Tuesday, and investors are bracing for more volatility, and stress in Tokyo could turn into stress for Wall Street and beyond. Yields on 30-year, 40-year Japanese debt spiked on Tuesday. Higher bond yields mean higher borrowing costs.Now, remember, Japan was home to ultra low interest rates for decades, providing an anchor to borrowing costs around the world. The nation has some of the biggest piles of debt in developed markets after years ...