It would seem that goverments — perhaps spooked by what they’re seeing at some of their European counterparts — are waking up to the fact that there’s not an unlimited pool of money out there for them. Perhaps.
At the very least, it certainly should make bond selling easier now to promise austerity down the road — even if there’s nothing credible about that.
Japan, meanwhile, remains an odd case. Folks have been warning about a funding crisis for a long time, but the Yen remains elevated and yields cheap, so certainly the market isn’t pricing in such a scenario at all (arguably same for the US).