Japan · Bitcoin · U.S. Treasury · Federal Reserve (FED) · China · CryptoSlate
Bitcoin runs into Treasury yield pressure as Japan sells nearly $30 billion of US debt
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◎ Multiple-sources
Japan’s shift from Treasury buyer to seller could lift global yields, tighten liquidity, and sharpen Bitcoin’s role in the sovereign debt debate.
Key facts
- The OECD's 2026 Global Debt Report projected gross borrowing across OECD countries at around $18 trillion in 2026, with net borrowing near $4 trillion, the second-highest on record
- Treasury TIC data put Japan's holdings at $1.24 trillion in February 2026, making it the largest foreign holder ahead of the UK at $897.3 billion and mainland China at $693.3 billion
- Bitcoin has moved from a failed push above $82,000 to a test of the $78,000 support zone, as rising US Treasury yields and inflation fears continue to pressure risk assets
- The BOJ also reduced its monthly JGB purchases from ¥5.7 trillion in August 2024 to ¥2.9 trillion in the first quarter of 2026, removing the ceiling that had held domestic yields near zero for years
Summary
Bitcoin faces renewed Treasury yield pressure after Japanese investors sold $29.6 billion of US government, agency, and local authority debt in the first quarter, the largest quarterly net sale since the second quarter of 2022. As the catalyst was an abrupt turnaround in Federal Reserve rate expectations when oil prices jumped, making existing Treasury positions less attractive. Treasury TIC data put Japan's holdings at $1.24 trillion in February 2026, making it the largest foreign holder ahead of the UK at $897.3 billion and mainland China at $693.3 billion. A $29.6 billion quarterly sale represents roughly 2.4% of those holdings, and in a market where marginal demand moves prices, the direction of quarterly outflows is what bond desks track.