🚨 Alert From Japan:
watch these top trending coins closely
Is the Japanese Yen about to weaken even more? That’s the big question right now — and the signals are getting intense.
The gap between U.S. and Japanese 10-year bond yields has dropped to just 2.09%, the smallest difference since March 2022. Over the last year, this gap has shrunk fast. U.S. yields have come down, while Japan’s 10-year yield has jumped to 2.07%, the highest level since 1997. Normally, a smaller gap should help the Yen get stronger… but something strange is happening.
Here’s the shock: even though this yield gap is shrinking, the U.S. dollar is still staying strong against the Yen. That usual relationship broke last year. This tells us investors are no longer just looking at interest rates — they are worried about Japan’s massive debt and the rapid rise in interest costs. As rates go up, Japan’s debt becomes more expensive to manage, and that fear is weighing heavily on the Yen. The message is clear: rising debt risks can’t be ignored anymore, and the Yen may stay under pressure longer than many expect.