Global financial markets face unprecedented volatility as Japan's 10-year bond yield surpasses the 3% threshold while US Treasury yields climb higher. These developments signal growing concerns about worldwide liquidity constraints, persistent inflation pressures, and mounting interest rate risks. Industry expert Uday Kotak cautions that central banks may need to substantially increase their balance sheets to stabilize markets, creating a paradoxical scenario where monetary interventions could trigger short-term rate hikes and amplify market unpredictability across international fixed-income sectors.

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