🏛 Central Banks & Macro risk-off · 6–18 months
A what‑if from the future

What if Japan debt-funded stimulus spikes the 30y JGB yield past 3.5%?

A large supplementary budget plus BoJ balance-sheet runoff sends super-long JGB yields surging; the global duration anchor lifts, long-end yields rise worldwide and risk-parity books take pain.

26%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 26% · 90% range 16–37% · 40 analogues · measured class risk_off 100% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — risk_off ≈7.4009/yr → 100% in 18 mo100%
Analyst prior · editorial share 28% of the class28%
Pooled · weight 87%27%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)27%
Published26%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A large supplementary budget plus BoJ balance-sheet runoff sends super-long JGB yields surging; the global duration anchor lifts, long-end yields rise worldwide and risk-parity books take pain. The trigger decomposes into signed root‑shocks — Yield-curve slope ▲ · Real yields ▲ · Risk appetite ▼ · Risk-parity deleveraging ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Tech sector XLK 📈 chartEquity▼ -1.0%
hist -0.69–-0.18% · other way -0.38% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.0%
hist -0.75–-0.19% · other way -0.29% (n=12)
3MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.8%
hist -1.65–+0.24% · other way +24.57% (n=12)
4Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.5%
hist -11.45–+1.45% · other way -1.0% (n=12)
530y Treasury yield DGS30 📈 chartRate▲ +5bp
hist +0.46–+5.64% · other way +14.1% (n=12)
6S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.4%
hist -0.48–-0.05% · other way +0.18% (n=12)
7Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.4%
model prior · unmeasured
810y Treasury yield DGS10 📈 chartRate▲ +4bp
hist +0.42–+5.23% · other way +14.7% (n=12)
9Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.4%
hist -0.37–+0.06% · other way +2.4% (n=12)
10Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -5.09–+1.62% · other way +5.56% (n=12)
11Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -7.83–+2.32% · other way +4.71% (n=12)
12Gold XAUon Hyperliquid 📈 chartCommodity▼ -0.4%
hist -0.27–+0.09% · other way -0.17% (n=12)
13Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.3%
hist -0.7–+0.5% · other way +3.18% (n=12)
14Coinbase COINon Hyperliquid 📈 chartEquity▼ -0.3%
hist -1.26–+0.39% · other way +18.8% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.0% · 30y Treasury yield +5bp · 10y Treasury yield +4bp · Homebuilders -0.3%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 KOSPI biggest-ever point loss triggers circuit breaker 2024-08 VIX third-highest spike on record 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 India Adani-Hindenburg rout 2023-01 Solana craters toward $8 on FTX/Alameda overhang 2022-12 Offshore yuan hits a record low 2022-11 CoinDesk exposes Alameda's FTT-heavy balance sheet 2022-11 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Three Arrows Capital liquidation order 2022-06 Celsius Network freezes withdrawals 2022-06 Netflix subscriber-loss crash 2022-04 Alibaba upsizes buyback to record $25 billion 2022-03 Meta 2022-02 Kaisa Group offshore default 2021-12 Omicron variant Black Friday selloff 2021-11 Turkish lira record low on rate cuts 2021-11 Evergrande debt crisis - global selloff 2021-09 Didi removed from China app stores after NYSE IPO 2021-07
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-9.2% · 5d -7.6%75%40 0.38✓ matches cascade
MU MUSHORT-3.0% · 5d -2.7%70%40 0.30✓ matches cascade
AMD AMDSHORT-0.9% · 5d -1.2%65%40 0.23✓ matches cascade
NVDA NVDASHORT-0.5% · 5d -2.2%65%40 0.22✓ matches cascade
ETH ETHSHORT-6.9% · 5d -5.3%62%40 0.19✓ matches cascade
ARM ARMSHORT-4.1% · 5d -5.2%63%19 0.19✓ matches cascade
NDX NDXSHORT-0.2% · 5d -0.9%62%40 0.18✓ matches cascade
Bitcoin BTCSHORT-4.5% · 5d -3.4%60%40 0.15✓ matches cascade
Gold XAULONG+0.2% · 5d -0.3% ↺ fades57%40 0.13⚠ differs
30y yield DGS30LONG+3bp · 5d +2bp57%40 0.12✓ matches cascade
MSTR MSTRSHORT-1.1% · 5d -3.2%55%40 0.10✓ matches cascade
MRVL MRVLLONG+2.5% · 5d -2.1% ↺ fades55%40 0.08⚠ differs
High-yield credit HYGSHORT-0.0% · 5d +0.2% ↺ fades55%40 0.07·
COIN COINSHORT-1.0% · 5d +0.6% ↺ fades53%40 0.05✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.