Our thoughts and prayers are with the people of Japan as they continue dealing with the earthquake and tsunami after effects.
The Tōhoku earthquake and tsunami caused significant destruction in Northern Japan while the on-going nuclear crisis threatens wide environmental contamination. Because the news situation is fluid, we’ve restricted our comments to longer-term observations and how it may affect the global economy.
1. U.S. Treasury yields increase
Because of the 2008 financial crisis, treasury yields are historically low. With Japan being pushed in to the global debt market to refinance rebuilding, upward pressure on treasury yields will increase.