Recent market volatility has been exacerbated by rising Japanese government bond yields, which are impacting global liquidity. As Japan is the world's largest creditor nation, its long-standing zero interest rate policy has fueled significant yen carry trades. Investors borrow low-cost yen to invest in higher-yielding overseas assets, such as U.S. stocks. This dynamic, coupled with high valuations, increases market fluctuations as institutions may take profits at any time.