A "returning tide" of Japanese capital is underway! A "selling storm" sweeping through Western financial markets is about to unfold.

According to the Wise Finance APP, the strategy team from RBC Capital Markets in Canada pointed out that the rising trajectory of Japanese government bond yields is attracting domestic investors in Japan to park their funds domestically rather than continue holding long-term overseas assets. This significant change in global currency exchange rates and government bond yields markets may result in downward pressure on the exchange rates of international currencies such as the US Dollar, Euro, and British Pound, as Japanese investors shift their investments from overseas markets to domestic ones, particularly due to expectations of interest rate hikes and pressure from Japan's fiscal deficits. Meanwhile, stock markets in Western countries may also face selling pressure.