Japan Bond Shock Triggers $640M Crypto Liquidations as JGB Yield Hits 17-Year High
Markets sold off Monday after Japan’s 10-year JGB yield jumped to a 17-year high, the steep repricing forcing roughly $640 million of crypto liquidations as traders were caught on the wrong side of leverage. The sudden rise in government bond yields triggered a classic risk-off shift — equities and risk assets fell while safe-haven flows tightened funding conditions, accelerating forced exits across spot and derivatives venues. The episode matters because higher sovereign yields can raise the cost of capital and make speculative crypto positions more vulnerable to margin stress, increasing short-term volatility. Traders and investors should watch leverage, funding rates and further moves in global bond markets closely; sustained yield pressure could prompt additional liquidation waves, while sharp dips may create tactical buying windows for longer-term holders.