Crypto News: Here’s How Japan’s Yield Stock Is Brewing A Market Meltdown, and How It Affects Bitcoin
The post Crypto News: Here’s How Japan’s Yield Stock Is Brewing A Market Meltdown, and How It Affects Bitcoin appeared on BitcoinEthereumNews.com.
Japan’s rising bond yields rattle global markets, strain the yen carry trade, and heighten risks for Bitcoin and crypto assets. Japan’s sharp bond yield surge has drawn global attention over the past week. The jump unsettled traders across several markets and created debates about liquidity risks. The rise also came during a fragile moment for digital assets which sit on shaky ground after slower flows into major crypto investment products. Japan’s Yield Shock Reshapes Market Expectations Japan startled global investors after its long-dated government bond yields climbed to levels not seen since the bonds first appeared. The 40-year yield jumped to 3.697%, while the 20-year yield stood at 2.80%. The 30-year yield reached 3.334% and even the 10-year yield increased by 70 basis points over the past twelve months. These moves followed Tokyo’s plan for a stimulus package worth more than 17 trillion yen, equal to roughly 110 billion dollars. Japan’s 40 year government bond yield has surged to its highest in history | source- X Many investors expected lower yields after such an announcement and several analysts pointed out that bond markets usually respond to fiscal support by pushing yields down. Instead, traders pushed yields higher. Shanaka Anslem Perera said the spike reflected doubts about the government’s ability to sustain its debt load. Japan now faces debt levels around 250% of its GDP, and interest costs already consume nearly a quarter of annual tax revenue. A Strain on the Yen Carry Trade The yield jump has also rattled one of the largest trading structures in global finance. For decades, the yen carry trade allowed investors to borrow cheaply in yen and direct the funds toward assets that deliver higher returns. Low rates in Japan made this strategy easy to maintain. Rising yields increase funding costs and raise currency risks…
Filed under: News - @ November 20, 2025 12:27 am