Bitcoin ‘Loves’ Rising Bond Yields In US And Japan? Market Commentator Thinks So
Rising bond yields and debt levels in Japan and the United States could be good news for Bitcoin (CRYPTO: BTC), The Kobeissi Letter said Sunday.
What Happened: In an X thread, the capital markets commentator pointed out the surge in Japan’s 40-year government bond yield, which has jumped from around 1.3% two years ago to 3.5% as of this writing. Moreover, the benchmark 10-year yield hovered near 1.51%, its highest level in two months.
The increase began when the Bank of Japan stopped buying bonds, leading to a larger bond supply in the market and higher yields.
The Japanese government holds $7.8 trillion of debt, making it the third most indebted government globally, behind the U.S. and China, The Kobeissi Letter said. Japan’s debt-to-GDP ratio recently exceeded 260% for the first time, according to Reuters, the highest among developed economies.
A similar situation was unfolding in the U.S., where …
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