Why the US Is Worried About Japan's Yen and Bond Market
- —Japan holds over $1.1 trillion in US Treasuries, more than any other foreign country
- —Tokyo spent about $167 billion defending the yen, partly by selling Treasuries
- —The Bank of Japan raised its key rate to 1.25% on September 18, the highest since 1995
- —Japan's 10-year yield hit a 30-year high of 3.115%
Why it matters: An unwind of the roughly $250 billion yen carry trade already sent Bitcoin down as much as 20% in August 2024, and the risk of a repeat weighs on crypto.
Source: BeInCrypto