Foreigners' record ¥1.25 trillion weekly JGB sell-off pressures yields as the ECB's revised Supercore gauge turns more cyclical.

The ECB's revised Supercore inflation indicator is now more cyclical, with a correlation of 0.76 to the unemployment gap versus 0.61 previously, sharpening its signal for policy. Meanwhile, record foreign selling of Japanese bonds—¥1.25 trillion in a week—threatens to push yields up, raising the cost of Japan's public debt. High debt in the Americas triples spread sensitivity to deficits, a warning for fiscal discipline. These threads point to a global repricing of rate expectations and sovereign risk.