Despite better-than-expected inflation data, the US 10-year government bond yield climbed to a multi-decade high of 5.28% on Thursday. Wall Street analysts are fiercely debating how Japan is driving this global bond market turmoil. Yardeni Research attributes it to the unwinding of JPY carry trades, while Deutsche Bank points to interest rate repricing caused by rising Japanese government bond (JGB) yields. A Goldman Sachs report shows that CTA trend-following funds' net short positions in global bond markets have reached -$170 billion and are continuing to expand. Analysts generally believe the root cause of the US Treasury sell-off lies in the Japanese bond market turmoil, with the Bank of Japan's (BOJ) policy space constrained by political pressure from new Prime Minister Sanae Takaichi, leading to a lack of willingness for further rate hikes. US Treasury Secretary Scott Bessent has also recently paid close attention to the situation in Japan.