- Japan’s 30-year yield reached a record 4.235% on Monday, its highest since 1999.
- BOJ’s Uchida called AI a major positive demand shock for prices and the economy.
- Uchida said heavy bond sales by AI-related firms have pushed long-term rates up.
Japan’s 30-year government bond yield rose to a record 4.235% on Monday, the highest since the maturity debuted in 1999, after a Bank of Japan official named artificial intelligence as a force behind higher long-term rates. On the same day, Artificial Superintelligence Alliance’s FET gained 15.09% in 24 hours to $0.2571, one of the few AI-linked tokens to rally.
Why the BOJ Is Pointing at AI
Deputy Governor Shinichi Uchida described AI adoption in a Monday speech as “a big positive demand shock” that has raised pressure on the economy and prices. He said it has lifted equity prices and eased financial conditions, while large bond sales by AI-related companies have pushed long-term rates higher.
Over time, he said, AI could raise productivity and capital accumulation, which may shift R-star, the neutral interest rate. He warned that a correction is possible if profits disappoint.
The yield first broke above 4% in May. The BOJ lifted its policy rate to 1.25% in September, and another increase is widely expected before year-end. Traders also point to last week’s inflation data as a factor, a link officials have not confirmed.
Does the Same Theme Reach Crypto?
If AI is treated as a macro force, top tokens tied to it might be expected to move as a group. Monday’s prices show otherwise:
- FET: +15.09% over 24 hours
- Venice Token (VVV): +5.87%
- NEAR Protocol: +1.68%
- Render (RENDER): +0.93%
- Bittensor (TAO): -2.99%
- Internet Computer (ICP): -6.44%
FET’s 24-hour volume of $322.43 million equals about 54% of its $602.08 million market value, a turnover rate that points to heavy trading concentrated in one token.
Reading the Disconnect
Uchida’s remarks focused on AI’s impact on inflation, borrowing costs, and equities, without mentioning digital assets. Rising Japanese yields also tend to tighten global liquidity, which can pressure speculative assets. Meanwhile, AI-linked tokens traded unevenly, with FET gaining while TAO and ICP declined, and RENDER remained nearly flat. That divergence suggests FET’s move was driven by token-specific factors rather than a broad AI-crypto rally.
That leaves FET’s rally looking driven by token-specific demand. No catalyst has been confirmed. Uchida’s warning about a correction if profits fall short applies to the broader AI trade, and traders may weigh it for AI-linked tokens too if sentiment turns.
Related: Japan Bond Sell-Off Sends Yields Higher, Raises Spillover Risk for Gold and Silver
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