Japan's Interest Rate Hike Signal Triggers "Bloodletting" Worries in U.S. Markets, Fed's Rate Cut Prospect May Change
BlockBeats News, December 2nd, as the largest foreign holder of U.S. Treasury bonds, Japan, if it tightens its monetary policy, may trigger domestic funds to flow back from U.S. bonds and other overseas assets, interrupting the downward trend of U.S. bond yields and adding uncertainty to the global market. On Monday, after Bank of Japan Governor Haruhiko Kuroda hinted that an interest rate hike may come later this month, global government bond yields generally rose (bond yields rise when bond prices fall). This statement caught investors by surprise, as it was originally expected that the Bank of Japan would maintain the status quo. Kuroda's remarks pushed the yield on Japan's 10-year government bonds to 1.879% — the highest closing level since June 2008. The U.S. 10-year Treasury yield also rose to 4.095%, while it was slightly below 4% in the middle of last week.
Wall Street is concerned that the rise in Japanese bond yields will attract funds away from U.S. investments, leading to an increase in U.S. Treasury bond yields. Japan is the largest foreign holder of U.S. government debt, holding around $1.2 trillion in U.S. Treasury bonds as of September. This year, the decline in U.S. bond yields has been a contributing factor to the Federal Reserve's decision to cut interest rates again, which has lowered mortgage rates and boosted the stock market — the stock market often benefits from lower bond yields, as investors can no longer achieve the same amount of risk-free return by simply holding bonds to maturity. The signal of Japan tightening its monetary policy has also raised concerns about the prospect of Fed rate cuts, as the rise in U.S. bond yields will be a hindrance to rate cuts.
You may also like

Breaker Game Over Line: Why Are Young People Turning to Long-Termism?

China to Launch New Digital Yuan Management System
Key Takeaways The People’s Bank of China will implement a new management system for the digital yuan on…

People’s Bank of China to Enhance Digital RMB Management System
Key Takeaways The People’s Bank of China (PBOC) plans to enhance the management system for the digital RMB.…

FLOW Token Plummets Amid Market Volatility and Regulatory Moves
Key Takeaways FLOW token has experienced a dramatic decline within the last 24 hours. Market volatility and profit-taking…

AI Tool Users Advised to Guard Against Toxic Prompt Attacks
Key Takeaways SlowMist founder Yu Xian emphasizes the risk of toxic prompt attacks in AI tools, urging users…

Hackers Exploit Rainbow Six Siege Servers, Ubisoft Responds
Key Takeaways Hackers successfully breached Rainbow Six Siege, distributing enormous amounts of in-game currency. Players discovered unexpected changes…

State of Crypto: Year in Review
Key Takeaways: 2025 marked a significant year for crypto policy in the U.S., with historic legislation and regulatory…

Coinbase CEO Declares Opposition to Reopening the GENIUS Act: A Clash with Bank Lobbying
Key Takeaways: Coinbase CEO Brian Armstrong criticizes banks for lobbying to reopen the GENIUS Act, seeing it as…

Fed’s ‘Skinny’ Accounts Aim to End Operation Chokepoint 2.0 — Insights from Senator Lummis
Key Takeaways: The Federal Reserve’s proposal to offer “skinny” master accounts to crypto companies is seen as a…

Trust Wallet Users Experience $7 Million Loss Due to Hacked Chrome Extension
Key Takeaways Trust Wallet faced a significant security breach affecting its Chrome extension, resulting in over $7 million…

Ubisoft halts Rainbow Six Siege after hackers give each player $13.3M credits
Key Takeaways A massive security breach in Rainbow Six Siege granted each player $13.3 million worth of in-game…

Circle Platform Promising Tokenized Gold, Silver Swaps Is a ‘Fake,’ Company Says
Key Takeaways: A fraudulent press release claimed that Circle had introduced a platform called CircleMetals for trading tokenized…

Mirae Asset’s Potential Acquisition of Korbit: A $100 Million Venture into Korea’s Crypto Market
Key Takeaways Mirae Asset Group is exploring the acquisition of the South Korean cryptocurrency exchange Korbit, in a…

Who is creating these ugly Memes?

Crypto Christmas Heist: Over $6 Million Lost, Trust Wallet Chrome Extension Wallet Hacked Analysis

Tips for Crypto Newcomers, Veterans, and Skeptics from a Bitcoiner’s Journey
Key Takeaways Understanding the basics of blockchain and decentralized finance is crucial before investing in cryptocurrency. Newcomers should…

Trust Wallet to Reimburse $7 Million Lost in Christmas Hack: An Inside Job?
Key Takeaways Trust Wallet’s browser extension was compromised, leading to a $7 million loss on Christmas Day. The…

Samourai Wallet Co-Founder Begins Prison Term Amidst Crypto Privacy Debate
Key Takeaways Keonne Rodriguez, the co-founder of Samourai Wallet, shares the emotional experience of his first day in…
Breaker Game Over Line: Why Are Young People Turning to Long-Termism?
China to Launch New Digital Yuan Management System
Key Takeaways The People’s Bank of China will implement a new management system for the digital yuan on…
People’s Bank of China to Enhance Digital RMB Management System
Key Takeaways The People’s Bank of China (PBOC) plans to enhance the management system for the digital RMB.…
FLOW Token Plummets Amid Market Volatility and Regulatory Moves
Key Takeaways FLOW token has experienced a dramatic decline within the last 24 hours. Market volatility and profit-taking…
AI Tool Users Advised to Guard Against Toxic Prompt Attacks
Key Takeaways SlowMist founder Yu Xian emphasizes the risk of toxic prompt attacks in AI tools, urging users…
Hackers Exploit Rainbow Six Siege Servers, Ubisoft Responds
Key Takeaways Hackers successfully breached Rainbow Six Siege, distributing enormous amounts of in-game currency. Players discovered unexpected changes…
Popular coins
Latest Crypto News
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Services:support@weex.com