performance of Japan’s 40-year government bond rises to 4.344% This Monday, May 18, 2026.
This level is the highest since the system was established in 2007, and a record for the maturity of Japanese government bonds in more than 30 years.
Coinciding with this rise, the price of Bitcoin (BTC) fell by almost 2% in 24 hours. digital currency Decrease from $81,000 to $76,600. This move sent Bitcoin back to levels not seen since May 1st. Over the past week, the stock has fallen by nearly 7%.
This reaction is explained by the behavior of investors towards Japanese government bonds. Government bonds currently offer higher returns with lower risk. By becoming more attractive, They raise funds that would normally be allocated to volatile assets like Bitcoin. This reduces demand and lowers prices.
Experts such as Mithul Koteka, head of macroeconomic strategy for currencies and emerging markets at Barclays, will explain the background to the recent rise in Japanese bonds. “There are many factors that influence the bond market,” he said, but highlighted geopolitical tensions between Iran and the United States as one of the main drivers of rising yields.
And what does one thing have to do with another?The explanation is The Iran war caused global oil prices to soar, causing strong inflation in Japan as well. This is because it is extremely dependent on external energy.
Fearing that this persistent inflation will erode the value of money in the coming decades, Large investors sold large quantities of Japanese government bonds to protect themselves.;This drop in security prices automatically pushed the 40-year Treasury yield to an all-time high.
Koteka added: “The Trump-Xi summit did not yield any progress on the Strait of Hormuz, which would ease the pressure on oil prices.” He further warned that “there are concerns that the energy market may be at a tipping point.”
Investors are now watching to see whether talks between the leaders of the United States, Iran and other negotiating nations ease tensions and stabilize energy markets. meanwhile, Bitcoin prices continue to fall due to the historic rise in Japanese government bonds.
