Japan’s Bond Rout Threatens Fiscal Stimulus as Crypto Markets Watch for Spillover
Japan's ¥20 trillion ($137B) stimulus plan faces mounting pressure as government bond yields spike to 15-year highs. The selloff, accelerating at its fastest pace since 2007, raises borrowing costs precisely when Prime Minister Takaichi needs cheap financing for her 'Sanaenomics' program.
Crypto traders are monitoring the yen's weakness - now NEAR inflation-adjusted record lows - for potential capital flight into digital assets. Japan's debt-to-GDP ratio, the highest among developed nations, makes this a stress test for global risk appetite.
The bond market turmoil coincides with Bitcoin hovering near all-time highs against the yen, suggesting some investors may already be using crypto as a hedge against Japan's fiscal instability.