According to The Kobeissi Letter, Japan's 30-year government bond prices have dropped by 45% since 2019, as yields surged approximately 275 basis points to near record highs since the bond's 2007 debut (source: @KobeissiLetter, June 2, 2025). This sharp decline signals significant capital outflows from traditional fixed income, potentially increasing investor interest in alternative assets like cryptocurrencies. The persistent bond market losses may drive liquidity into digital assets, especially as Japanese and global investors seek higher returns and inflation hedges amid rising yields.

According to @KobeissiLetter citing @Kalshi, prediction markets now expect fewer than two US interest rate cuts in 2025, with the median forecast at 1.9 cuts, sharply down from a peak of four cuts in April. This shift in expectations has driven yields higher, reinforcing the 'higher for longer' rate narrative. For crypto traders, rising yields and reduced rate cut forecasts often signal a risk-off environment, historically leading to downward pressure on Bitcoin and altcoin prices as liquidity tightens and investors seek safer assets. This trend may challenge bullish momentum in the crypto market in the near term. Source: @KobeissiLetter on Twitter, May 28, 2025.

According to The Kobeissi Letter, Japan's 30-year government bond yield has surged to 3.20%, marking a 100 basis point increase since its April 7th low and a 45% jump in just 44 days (Source: The Kobeissi Letter, Twitter, May 21, 2025). This rapid rise in Japanese yields signals tightening liquidity and increased volatility in global financial markets, which often leads to capital outflows from risk assets like cryptocurrencies. Traders should watch for potential downside in major crypto assets as higher yields in traditional markets may reduce demand for digital currencies.

According to The Kobeissi Letter, the 10-year Treasury Note yield has surged back above 4.40%, coinciding with a sharp decline in equity futures. This movement suggests a potential shift in investor sentiment towards safer assets, impacting trading strategies. Traders should monitor bond yield trends closely as they signal changes in market risk appetite.