Japanese Fund Sells French Bonds Amid Crisis, Bitcoin Traders Watch Data Release

A Japanese fund sold all its French government bonds amid a French bond crisis. Japan's Ministry of Finance will release data on October 8, which may indicate whether this trend is widespread. Bitcoin (BTC) and Ethereum (ETH) fell by up to 20% during the 2024 yen shock, suggesting potential impacts beyond France. France's borrowing costs reached their highest since 2002, with a 10-year rate of 4.96%. Shinji Kunibe, head of the global bond team at Sumitomo Mitsui DS Asset Management, redirected funds into German bonds and short-term Japanese debt due to concerns over France's finances, which are at 119% of its annual economic output. Despite the sell-off, France successfully sold about €12 billion in long-term bonds on October 1, with bids nearly double that amount. Japan's trading data will reveal the extent of foreign bond sales, with previous reports showing net sales of ¥684.5 billion (4.3 billion USD) and ¥1.9 trillion (12 billion USD) in the weeks leading up to Kunibe's sale. The yen carry trade, which involves borrowing cheap yen to invest abroad, may be affected by the yen's fluctuations. Bitcoin has remained resilient, trading at 85,363 USD, up 0.46% in 24 hours.

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