Japan's 30-year bond yield just hit a record—here's why it matters
Japan's 30-year government bond yield jumped to around 3.5%, a level not seen in recent years.
This sudden spike has investors worried, especially those who rely on borrowing cheap yen to chase higher returns elsewhere—a popular move known as the yen carry trade.
What changed? Japan finally raised its rates
After more than two decades of near-zero interest rates, the Bank of Japan switched things up recently, ending negative rates and loosening its grip on long-term yields.
With inflation sticking above 2%, this policy shift is now pushing Japanese bond yields way higher than what most people are used to.
Why should you care? It could shake up startup funding
With Japan's borrowing costs shooting from almost nothing to over 3%, the era of easy money for global investors—including investors in India—is fading fast.
Cheap capital that once fueled risky startups is drying up, so expect more focus on actual profits and cash flow instead of just chasing growth stories.