Japanese government bonds have a three-body problem

Japan's ten-year government bond yield hit 2.8% in May, the highest in almost 30 years, marking a significant shift from its long-term near-zero yield. This surge had ripple effects, influencing US Treasury yields and signaling a broader shift in global financial markets. Such a movement underscores the interconnectedness of global economies and could impact everything from inflation rates to interest on mortgages, suggesting policymakers worldwide need to navigate these changing dynamics carefully.