09:27
Japan's bond yields hit a new high since 2008, impacting global arbitrage trading, while Crypto Assets face liquidity pressure.
Japan's 10-year government bond yield rose to 1.86%, reaching a new high since 2008 and triggering tremors in global markets. As the Bank of Japan hinted that it would consider raising interest rates at the December rate meeting, the long-standing era of low interest rates may come to an end, directly threatening the support for global risk assets and Yen Carry Trade in the crypto market.
In the past year, Japan's government bond yields nearly doubled, with the two-year yield reaching 1% for the first time since 2008. Although 1.86% is still considered low globally, it represents a significant structural change for Japan, a country that has long been in a "zero interest rate" environment. The low interest rates had allowed global investors to borrow yen at extremely low costs, flooding into U.S. Treasuries, European bonds, and high-risk assets, including encryption. However, as domestic yields rise, funds may begin to flow back to Japan.
BTC-5.8%

