Global Financial Markets React to Japan's Bond Yield Surge

According to Odaily, Japan's 30-year government bond yield has surpassed 3%, marking a historic high and triggering a ripple effect across global financial markets. The country's government debt now accounts for 234% of its GDP, and recent comments by Prime Minister Shigeru Ishiba have heightened concerns about fiscal sustainability. While the yen's exchange rate is traditionally more influenced by short-term interest rate differentials, a continued sell-off in the bond market could lead to capital inflows that strengthen the yen in the short term. Simultaneously, the U.S. 30-year bond yield has risen above 5%, with investors worried about the debt outlook following potential obstacles to U.S. President Donald Trump's $3.8 trillion fiscal plan. Amid increasing macroeconomic pressures, Bitcoin attempted to break the $108,000 mark but was unsuccessful. Analysis indicates that current buying activity is primarily driven by strategic investors and ongoing purchases by the publicly listed company Metaplanet. However, there are concerns that a slowdown in institutional buying could lead to profit-taking. The report highlights Bitcoin's resilience over the past month despite facing multiple pressures, including soaring bond yields, escalating tariffs, and the risk of stagflation in the U.S. during the third and fourth quarters. If Bitcoin's price surpasses previous highs, it could trigger a FOMO (fear of missing out) sentiment among retail investors, potentially fueling a new upward trend. It is crucial to closely monitor the impact of fluctuations in Japan's bond market on global risk assets.