US futures slump, Japan 10‑yr yield spikes; Crypto wipeout — Bitcoin slides amid yen‑funded unwind fears, ETFs post ~$3.5B November outflows

first published 2025-12-01T01:14:08Z

Japan’s 10-year government bond yield rose to 1.86% (highest since April 2008) and the two-year yield hit 1% for the first time since 2008. The move threatens the long-running yen carry trade that funded trillions of yen into higher-yielding, riskier assets (US Treasuries, equities and crypto). Analysts warn rising domestic yields could prompt repatriation of capital — a headwind for US Treasury demand (Japanese holders own roughly $1.1 trillion) — and may have contributed to a recent crypto sell-off, with Bitcoin singled out as vulnerable.

AI Analysis

10‑yr yield reached 1.86% and 2‑yr reached 1% (both multi‑year highs), which risks unwinding the yen carry trade that funded trillions of yen into risky assets; analysts say repatriation would reduce Japanese demand for US Treasuries (Japanese holders ≈ $1.1T) and may have contributed to recent crypto weakness, with Bitcoin noted as especially vulnerable.

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