Japanese bank Norinchukin Bank has announced a significant loss of ¥1.8 trillion (approximately $12.6 billion) for fiscal year 2024. This substantial loss is attributed to the sale of large quantities of U.S. Treasury bonds and other foreign securities. The unrealized losses on these investments reached ¥1.24 trillion, representing a significant portion of the bank’s portfolio (20%) composed of collateralized loan obligations (CLOs). Arthur Hayes commented that this development may decrease confidence among other institutions in holding U.S. Treasury bonds. This could also signal another potential buyer has withdrawn from the market, potentially impacting demand for U.S. debt.