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‘Widow-Maker’ Trade Becomes World Beater as Japan Bonds Sink
Market Intelligence Analysis
AI-Powered
Why This Matters
Japanese government bonds have lost over 4% in total return terms this year, making them the worst performer in the global bond market. A 'Widow-Maker' trade, where investors borrow and sell Japanese bonds in anticipation of falling prices, has become a lucrative bet.
Market Impact
The decline of Japanese government bonds could lead to a potential increase in yields, making them more attractive to investors. This could have a ripple effect on the global bond market, potentially influencing other government bond yields and investor sentiment.
Sentiment
Bearish
AI Confidence
80%
Article Context
Note: This is a brief excerpt for context. Click below to read the full article on the original source.
The idea is simple: borrow and sell Japanese government bonds in expectation of tumbling prices, before buying them back and pocketing the difference. Now, it has become one of the most lucrative bets in the global bond market. Japanese bonds have lost more than 4% this year in total return terms that exclude currency swings, making them by far the worst performer in the world’s government bond markets, according to Bloomberg calculations.
Original article published by
Unknown
on October 21, 2025.
Analysis and insights provided by AnalystMarkets AI.
Analysis and insights provided by AnalystMarkets AI.