Japan's 2-year government bonds just hit a yield of 1.070%—haven't seen levels like this since July 2007. That's nearly 18 years ago, back when the global financial system looked completely different.

Why does this matter? Rising bond yields in a major economy like Japan usually signal shifting monetary policy expectations. The Bank of Japan has been walking a tightrope between ultra-loose policy and gradual normalization. When yields climb like this, it reflects either inflation concerns or actual rate hike expectations—both scenarios tend to pull liquidity out of riskier assets.

For crypto markets, Japanese investors have historically been major players. Tighter monetary conditions in Japan could mean less capital flowing into speculative positions. Worth watching how this plays out over the coming weeks, especially if other central banks start moving in sync.