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The Bank of Japan (BOJ) has stunned markets by raising the cap on its 10-year government bond and there\u2019s no one Jack would rather speak to than, Weston Nakamura, macro analyst and BOJ aficionado.\nWeston tells Jack that the BOJ\u2019s decision to allow Japanese government bonds (JGBs) to trade with a higher yield was not, as some westerners might presume, to fight inflation or even necessarily to defend the yen. Rather, the Bank of Japan is seeking to restore order to the JGB market, which has been steadily deteriorating throughout this year.\nWeston argues that if Japanese investors with capital abroad repatriate their capital and sell foreign assets, the U.S. Treasury market could be in for a wild ride, one similar to the chaos in U.K. gilt market in September. Filmed the afternoon of December 20, 2022.\nFollow Weston Nakamura on Twitter https://twitter.com/acrossthespread\nFollow Jack Farley on Twitter https://rb.gy/uesguv\nFollow Forward Guidance on Twitter https://rb.gy/cy0dki\nFollow Blockworks on Twitter https://rb.gy/igyzsj\n--\nGet top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:\nhttps://rb.gy/5weeyw\nMarket commentary, charts, degen trade ideas, governance updates, token performance, can\u2019t-miss-tweets and more. Subscribe to the Blockworks Research \u201cDaily Debrief\u201d Newsletter: https://rb.gy/feusos