Japan’s long-term government bond yields have climbed to record highs—Japan’s 30-year yield reached 3.42%—weakening the yen carry trade by making cheap yen funding less attractive. Higher JGB yields are prompting insurers and pension funds to repatriate capital and reducing foreign demand for assets like US Treasuries. The resulting tighter liquidity and higher funding costs increase volatility and downside risk for leveraged assets; the article highlights Bitcoin as particularly vulnerable, often experiencing delayed sell-offs after Japanese yield spikes. Macro analysts warn this dynamic could trigger broader market strain if ignored.

Facts in the article: Japan’s 30-year yield hit 3.42%; rising yields undermine the yen carry trade, encourage repatriation by insurers and pension funds, and reduce foreign demand for other assets. These effects tighten liquidity and raise funding costs, which the article links to higher volatility and delayed sell-offs in Bitcoin—supporting a bearish outlook and a meaningful (but not extreme) market impact for traders.