Peter Schiff warns the U.S. “Recession” risk as Japanese bond yields hit 15-year highs and German bond sales trigger market shocks – Ishares 20+ years of fiscal bond ETF (NASDAQ: TLT)

Yields on Japanese and German government bonds rose sharply on Thursday, with 10-year yields rising to their highest level since 2009, while market sell-offs earlier this week.

what happened: Germany’s 10-year Bund yield jumped about 28 basis points to 2.76%, reaching its highest level since October 2023. This marks the biggest sell-off in German government bonds since Berlin Wall fell, driven by expectations for increased spending.

Yields on Japanese government bonds soared above 1.5% on Thursday, tracking the rally of Euro bond yields after Germany announced plans to offer a 500 billion euro ($540.18 billion) infrastructure fund and a proposal to overhaul the lending rules.

In February, Vice Governor of Bank of Japan Shinichi Uchida It pointed out that if economic forecasts are achieved, the central bank will consider further interest rate increases. Uchida stressed that while interest rates had been raised to 0.5% higher in January, Japan started with widespread monetary easing.

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Why it matters:economist Peter Schiff “As the Bund of Germany also rises and the dollar falls, there will be a lot of competition in the Treasury. Rising bond yields will lead to a deeper recession in the U.S. economy,” wrote on X.

These movements have had a significant impact on U.S. investors as Japan deviates from hyper-floating monetary policy. Since ending its 17-year negative interest rate policy in March 2024, Japan’s yen and yields have risen, prompting Japanese investors to repatriate capital from foreign markets.

Treasury yields approached Wednesday’s four-month low, with a 10-year note of 4.23%. iShares Treasury Bill ETFs over 20 years TLT In economic data showing strong service sector growth but weakened employment figures, it fell by 0.24%.

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