Japan's markets in freefall: trillions wiped out in minutes

Japan's stock market has suffered a dizzying plunge, losing billions in minutes. A massive sell-off of US Treasury bonds by Japan could be a desperate measure to halt the collapse.

## An unprecedented market crash

Japan's stock market has experienced a genuine earthquake. In just **10 minutes**, the Japanese market saw more than **25 trillion yen** (approximately **160 billion US dollars** at the current exchange rate) evaporate. A plunge of such magnitude in such a short space of time is, to say the least, alarming and has put investors around the world on alert. Sudden moves like this are usually a sign of a deep crisis of confidence or of a major macroeconomic event.

## A rescue strategy?

Faced with this bleak picture, reports have emerged that **Japan** would be actively selling off its holdings of **US** Treasury bonds. It is speculated that this move could be a desperate attempt to inject liquidity into its own market or, at the very least, to soften the impact of the fall. Selling US assets, a cornerstone of the currency reserves of many countries, is a far-reaching decision with global implications.

## Global implications

The health of the Japanese economy, the world's third largest, carries considerable weight in international markets. A stock market collapse and a massive sell-off of US Treasuries could trigger a domino effect, destabilising other markets and generating uncertainty worldwide. The current situation calls for caution and for keeping a close eye on how events unfold in the coming hours and days.