Japan's 30-Year Bond Yield Nears 4.205%, Bitcoin Faces Impact

Japan's 30-year government bond yield approached its all-time high of 4.205% on Tuesday, while the 10-year yield reached 3% for the first time since 1996. The rate hike was anticipated, but the public demand from Washington for increases surprised markets. US Treasury Secretary Scott Bessent met with Japan's Finance Minister Satsuki Katayama and Bank of Japan (BOJ) Governor Kazuo Ueda at the G20 finance gathering, advocating for hikes and a clearer fiscal plan. Japan's entire yield curve shifted, with the two-year yield hitting a 31-year high, increasing yen carry trade costs. Japan's budget had assumed a 3% long-term rate for debt-service calculations, making rising borrowing costs a significant concern. Other long-end markets also reacted, with UK 10-year gilts at 5.23% and US 10-year Treasuries at 4.78%. Bitcoin (BTC) and Ethereum (ETH) previously dropped up to 20% during the August 2024 unwind due to margin calls across asset classes. Despite the turmoil, Bitcoin has not rallied, with the dollar near 159.75 yen, close to the 160 mark that could trigger yen-buying intervention. The BOJ's decision on September 18 is expected to influence crypto markets, with a quarter-point move to 1.25% priced in.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.