Key Transaction Data: US 10-Year Treasury Yield Rises to 4.086%
BlockBeats News, December 2nd, according to market data, influenced by the interest rate hike signal issued by the Bank of Japan, the yield on the 10-year US Treasury bond rose to 4.086%, rebounding by approximately 3.12% from a recent low of 3.962%.
Japanese investors are the largest foreign holders of US Treasury bonds. The market generally believes that when the Bank of Japan raises interest rates and the yields on Japanese Government Bonds (JGB) start to rise (such as the 10-year Japanese government bond yield breaking the 1% level), Japanese funds will no longer need to endure exchange rate fluctuations to buy US bonds. Instead, they will choose to sell US bonds, repatriate funds to Japan, and buy domestic bonds. The decline in US bond prices will lead to an increase in US bond yields, raising global US dollar borrowing costs and bearish on risk assets. The recent rise in the yield on the 10-year US Treasury bond indicates that the market has reacted to the Bank of Japan's interest rate hike signal.
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