Japan 10-Year Bond Yield Hits 2008 High, Analyst Warns of Global Liquidity Shift

As reported by Coinpedia, Japan’s 10-year government bond yield surged to 1.85%, the highest level since 2008, signaling a major shift in global liquidity dynamics. Analysts warn that rising Japanese yields could draw capital away from U.S. Treasuries, risk assets, and crypto, as the Bank of Japan moves toward rate normalization. The yen, once a stable funding currency, is now a market-moving force again, with Japanese institutions holding $1.1 trillion in U.S. Treasuries reconsidering their overseas investments. The shift comes amid Japan’s prolonged inflation above 2% and a ¥21.3 trillion stimulus package, which is further pushing long-term yields higher. Analyst Shanaka Anslem Perera noted that Japan’s role as a global liquidity anchor is breaking, with implications for the entire post-2008 financial system.