Japan’s 10-Year Bond Yield Skyrockets to 2008 Highs - Risk Assets Brace for Impact

Tokyo's bond market just flashed a warning signal that's rattling traders worldwide.

The Yield Surge

Japan's benchmark 10-year government bond yield hit levels not seen since the global financial crisis—climbing to its highest point since 2008. That's seventeen years of suppressed rates finally breaking loose.

Risk Assets on Edge

When the world's third-largest economy sees borrowing costs spike this dramatically, it sends shockwaves through every risk-on investment. Higher yields in 'safe' government bonds make speculative assets—including cryptocurrencies—suddenly look a lot less attractive by comparison.

Traditional finance's 'risk-free' rate just got riskier—and crypto might just be the hedge they never saw coming.

Veteran lawmaker calls for BOJ rate hike

Veteran ruling party lawmaker Taro Kono told Reuters on Tuesday that Japan should raise interest rates and address fiscal imprudence to strengthen the weak yen, which has proven to be inflationary.

The central bank ended a massive, decade-long stimulus program last year and raised short-term rates to 0.5% in January. Since then, it has held rates steady.

Kono's comment follows a similar remark by the U.S. Treasury Secretary Scott Bessent, who asked the BOJ to raise rates and put a floor under the yen.