Japan’s 10-year government bond yield briefly exceeded 3%, its highest level since 1996, while the 30-year yield reached a record 4.18%. BlackRock warned on Sept. 8 that higher Japanese yields could reduce demand for U.S. Treasuries by making domestic assets more attractive to Japanese investors. A yen-hedged 10-year U.S. Treasury yields about 2% for Japanese investors, compared with roughly 3% on a 10-year Japanese government bond. Japan holds roughly $1.1 trillion in U.S. Treasuries, and BlackRock used a hypothetical 5% portfolio shift to illustrate a potential $55 billion redirection toward Japanese assets. Fitch Ratings expressed a similar view but did not forecast broad liquidation of foreign bond holdings. The Bank of Japan’s policy path, currency movements, inflation and hedging costs will determine whether investors repatriate capital or adjust only new purchases. Higher global bond yields are also adding pressure to Bitcoin and other non-yielding assets, although Japanese yields alone do not establish the cause of Bitcoin’s decline.