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SIGMA ALERT — ELEVATED RISK LEVEL

Japan · Issued 2026-06-16 · SIGMA 51.9 / 100

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Japan Risk Intelligence Briefing

2026-06-16 · SIGMA Alert

Japan financial risk — sovereign debt 260% GDP, BOJ yield curve control exit, yen carry trade unwind.

SIGMA Score

51.9

Accumulation

Phantom Score

38

narrative divergence

Kairos Urgency

LOW

30.2d remaining

Velocity

→ Building

risk trajectory

Closest Historical Analog

Fed Pivot Panic / Q4 2018 Selloff

2018-12 · SIGMA-equivalent: 52

Fed hike + QT. S&P 500 -20%. High yield credit spread +250bps. Powell "autopilot" comment.

Current reading is 0 points below Fed Pivot Panic / Q4 2018 Selloff.

Historical Outcome

Fed pivoted Jan 2019. Rate cuts resumed July 2019. Equity recovery >20% in H1 2019.

Risk Dimensions

Sovereign/Fiscal

85

Banking Stress

42

Currency Risk

35

Political Risk

28

Contagion Risk

68

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