Rising bond yields and debt levels in Japan and the United States could be good news for Bitcoin (CRYPTO: BTC), The Kobeissi Letter said Sunday.
What Happened: In an X thread, the capital markets commentator pointed out the surge in Japan’s 40-year government bond yield, which has jumped from around 1.3% two years ago to 3.5% as of this writing. Moreover, the benchmark 10-year yield hovered near 1.51%, its highest level in two months.
The increase began when the Bank of Japan stopped buying bonds, leading to a larger bond supply in the market and higher yields.
The Japanese government holds $7.8 trillion of debt, making it the third most indebted government globally, behind the U.S. and China, The Kobeissi Letter said. Japan’s debt-to-GDP ratio recently exceeded 260% for the first time, according to Reuters, the highest among developed economies.
A similar situation was unfolding in the U.S., where …