Japan’s October 6 ten-year government bond auction cleared at a yield of 3.101%, up 10.6 basis points from the 2.995% recorded in September’s sale. Major Japan-resident institutions sold a net 2.5894 trillion yen of foreign long-term debt securities between September 13 and 26, according to Ministry of Finance data. This large-scale foreign debt selling could reduce international bond demand, raise borrowing costs, and limit available liquidity for risk assets such as Bitcoin. Research from the Bank for International Settlements shows that funding conditions and speculative motives are key drivers of cross-border Bitcoin and Ether flows, suggesting a potential link between Japan’s bond strategy and the cryptocurrency market.
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