Japan Defense Spending to Worsen US Treasury Yield Pain, Westpac Says

Westpac's argument links Japan's defense-spending plans to a funding channel few treat as a crypto or RWA story: heavier Japanese issuance can pull global duration supply higher, and if US yields near 5% are the new normal, the discount rate used to value every yield-bearing on-chain asset shifts with it. The read-across matters most for tokenized Treasuries and any RWA product marketed on a yield spread. Whether the 5% framing holds as a baseline, or proves another overshoot, is the open question.