Schiff Warns Japan's $1.1 Trillion Treasury Hoard Could Prick U.S. Bubble as 30-Year JGB Yield Nears 4%
Updated
Updated · Bitcoin.com News · Jul 27
Schiff Warns Japan's $1.1 Trillion Treasury Hoard Could Prick U.S. Bubble as 30-Year JGB Yield Nears 4%
1 articles · Updated · Bitcoin.com News · Jul 27
Summary
Japan’s bond-market strain is the bigger immediate risk than the AI selloff, Peter Schiff said, arguing stress there could force liquidation of more than $1.1 trillion in U.S. Treasuries.
Record pressure is building in Japan: the 30-year JGB yield has climbed near 4%, the yen has sunk to a 40-year low, public debt exceeds 200% of GDP, and the policy rate is still just 1%.
Schiff said the Bank of Japan faces a damaging choice between aggressive rate hikes that trigger recession and capital repatriation, or inaction that risks a deeper currency slide.
He tied that threat to a broader U.S. vulnerability, noting the 30-year Treasury yield closed at 5.16%—its highest since 2006—while federal debt has swelled to $39.6 trillion.
The warning came as AI leaders also stumbled, with Alphabet down 10%, Oracle off 41% in 2026 and Microsoft down 19.3% year to date, reinforcing Schiff’s view that investors are reassessing heavy AI spending.