🚨WARNING: JAPAN BOND MARKET IS COOKED
Japanese bond yields are exploding in ways we almost never see in a "strong" economy.
The 10Y, 20Y, 30Y, and even 40Y JGB yields have hit their highest levels this century (10Y ~2.3%, 40Y >4% recently!).
Why should crypto traders care?
For decades, Japan was the world's cheapest funding source → near-zero (or negative) rates → yen carry trade fueled global risk assets, stocks, commodities, everything pumped.
That engine is now breaking. Japan faces:
• Collapsing birth rate → shrinking workforce
• Highest debt-to-GDP on Earth (~250%+)
• Growth potential tanks → bond buyers flee → yields spike
This isn't isolated. Capital is ROTATING hard:
Out of Japanese bonds → straight into hard assets like gold and silver (that's why PMs and JGB yields are rising together 📈). Investors dumping gov debt for safe-haven protection.
But this phase won't last forever. If yields keep ripping:
• BOJ forced to pause tightening
• Bond buying restarts
• Yield curve control vibes return
We've already seen spillover carnage: S&P 500 wiped out massive value (reports of $1T+ losses tied to Japan liquidity fears). Japan isn't regional—it's a global liquidity fault line.
What happens when BOJ steps in?
• Yields stabilize
• Gold/silver rush peaks → potential blow-off top
• Capital rotates back into risk-on (stocks, crypto?)
That's the moment I'll load up heavily on dips while others panic-wait for a bigger crash.
Precious metals heating up now, but watch for the reversal signal.
What do you think—gold/silver top incoming, or more upside first? Japan carry unwind bullish/bearish for BTC? Drop your takes below! 👇
