Japan's Bond Yield Hits Record High as BOJ Cites AI Demand Shock

Japan's 30-year government bond yield surged to a record 4.235% on October 5, surpassing its previous high since 1999. The jump came after Bank of Japan Deputy Governor Shinichi Uchida described artificial intelligence as a 'big positive demand shock' that has raised pressure on the economy and prices.

In a speech on the same day, Uchida noted that AI adoption has lifted equity prices and eased financial conditions, but also pushed long-term rates higher due to heavy bond sales by AI-related companies.

The BOJ's policy rate is expected to rise to 1.25% before year-end, and traders point to last week's inflation data as a factor contributing to the yield's increase.

Meanwhile, the FET token, linked to the Artificial Superintelligence Alliance, gained 15.09% in 24 hours to $0.2571, while other AI-linked tokens traded unevenly.