Bank of Japan Set to Hike to 1.25%, Highest Since 1995. Bitcoin Isn't Flinching Yet

The Bank of Japan (BOJ) meets Thursday and Friday and is widely expected to raise its policy rate to 1.25%, the highest level since April 1995. Japan’s short-term bond yields have already gone vertical ahead of the decision.

Japanese government bonds, the yen, and Tokyo stocks are all repricing hard. Bitcoin (BTC) is not following, and that divergence faces its first real test this week. Japan’s Short End Went Vertical Ahead of the Rate Hike Japan’s six-month bill yield closed near 1.335% on Friday.

Two years ago, the same maturity traded below zero.

JAPAN'S SHORT-TERM YIELD IS GOING VERTICAL.Today, Japan's 3-month bond yield hit 1.25%, its highest level in 31.5 years.Japan's 6-month yield hit 1.34%, its highest level in 31 years.What's really surprising here is that both these yields were negative just 2 years ago, and… pic.twitter.com/RPsFJYUALr— The Macro Paper (@macropaperr) September 14, 2026 The 2026 climb shows almost no pullback.