Citadel CEO: Soaring Japanese bond yields are a wake-up call for the US.

According to Mars Finance, on January 23, Kenneth Griffin, founder and CEO of multi-strategy hedge fund Citadel, warned in Davos that the recent record high yields on Japanese government bonds are a "clear warning" for the United States. Currently, US Treasury yields are approaching the dangerous 5% threshold. A 5% yield not only means that the return on holding US Treasuries is comparable to that of the stock market, but also signifies a fundamental shift in risk logic. Bonds are typically a stable, low-risk ballast in an investment portfolio. However, when bond yields soar to levels comparable to stocks, investors seeking stability face excessive risk. Griffin pointed out, "Once the market believes that the US no longer has perfect creditworthiness, US Treasuries will be seen as risky assets, leading to a simultaneous decline in both stocks and bonds. The result is that the bond market demands higher yields, which in turn pushes up mortgage rates, ultimately leading to a higher cost for deficit financing." Although the US has not yet reached the point of "playing with fire," the window of opportunity for policymakers is closing. (Jinshi)