$BTC
Japan’s 10-year government bond yields surged to 1.98% in December 2025, the highest level since the 1990s. It comes as markets braced for the Bank of Japan’s (BOJ) policy meeting on December 19.
The move has triggered a global rally in precious metals, with gold and silver surging 135% and 175%, respectively, since early 2023. Meanwhile, Bitcoin is under pressure as forced selling intensifies across Asian exchanges, highlighting a divergence in market reactions to Japan’s rate shift.
Japan’s Bond Yields Hit 1.98%
For decades, Japan maintained near-zero interest rates, anchoring global liquidity through the yen carry trade.
Investors borrowed yen at a low rate to fund higher-yielding assets worldwide, effectively exporting ultra-low interest rates.
An expected 25-basis-point hike, raising the rate to 0.75%, may appear modest in absolute terms, but the pace of change matters more than the level.
