Mad Bears Club Alpha
  • Website
  • White Paper
  • Discord
  • X
  • Telegram
  • Alpha Premium
  • Crypto Tools
  • Alpha Premium
  • Crypto Tools
Mad Bears Club Alpha
Mad Bears Club Alpha Mad Bears Club Alpha

Japanese bonds – how they reshape global markets?

  • May 22, 2025

While most are busy discussing Bitcoin’s new all-time highs, seasoned market participants are watching a far more fundamental signal — the rise in Japanese Government Bond (JGB) yields.

Japan is exiting the era of “free money”

Since 2016, the Bank of Japan has kept 10-year bond yields around 0% through its Yield Curve Control (YCC) mechanism.

But in 2024–2025, that control has been gradually lifted. Today, yields have surpassed 1.5% — a structural shift for the Japanese debt market. For context: back in 2022, yields were around just 0.1%.

Capital repatriation: when money comes home

Japanese institutional investors are among the largest holders of foreign debt. According to the U.S. Treasury Department, Japanese investors hold over $1.1 trillion in U.S. Treasuries.

The rise in JGB yields is making domestic assets attractive again — especially as currency-hedged returns on U.S. assets are declining. Holding dollars is becoming less profitable.

The consequences are global

Japan is the largest foreign holder of U.S. government debt. As JGB yields rise, Japanese investors have less incentive to buy U.S. bonds — they may prefer to keep capital at home.

This could push U.S. yields higher due to declining demand for Treasuries. That, in turn, may hit all risk assets — including cryptocurrencies. So while BTC is hitting record prices, we may be heading into a period of tightening global liquidity.

Where does Bitcoin fit in?

Rising yields always challenge risk assets. But if a liquidity shortage unfolds, central banks may be forced to ease monetary policy.

And in such an environment, Bitcoin becomes a favorable asset: both as a hedge against currency debasement and a beneficiary of a monetary pivot.

Conclusions

Shifts in the Japanese bond market could trigger a transformation of the entire global financial architecture.

It’s signals like these — not headlines about $111k — that shape real capital flows.

Alpha Premium
Crypto Tools
Total
0
Shares
Share 0
You May Also Like
The meme cycle is dead for now and here’s why
View Post

The meme cycle is dead for now and here’s why

  • June 2, 2025
Psychology of investing: mastering emotions
View Post

Psychology of investing: mastering emotions

  • May 30, 2025
The meme market: from chaos to cults
View Post

The meme market: from chaos to cults

  • May 27, 2025
Understanding tokenomics: how to analyze crypto projects?
View Post

Understanding tokenomics: how to analyze crypto projects?

  • May 24, 2025
Styles of crypto investing: how to find yours?
View Post

Styles of crypto investing: how to find yours?

  • May 20, 2025
Alpha points from Binance – gold mine for drop hunters
View Post

Alpha points from Binance – gold mine for drop hunters

  • May 16, 2025
Axiom: the next-gen memes coins trading platform
View Post

Axiom: the next-gen memes coins trading platform

  • May 14, 2025
How to spot a promising memecoin before it explodes
View Post

How to spot a promising memecoin before it explodes

  • May 12, 2025
Mad Bears Club Alpha
  • Website
  • White Paper
  • Discord
  • X
  • Telegram
  • Alpha Premium
  • Crypto Tools

Input your search keywords and press Enter.