Japan and the US's first joint yen intervention since 1998 may boost Bitcoin and risk assets by increasing global dollar liquidity, despite risks from unwinding yen carry trades and potential impacts on US Treasury markets.
US Treasury yields surge to 2007 highs, attributed to inflation fears due to energy prices, yet TIPS data suggests real yields, not inflation expectations, are rising, potentially impacting crypto attractiveness.
US stocks dipped Monday afternoon as an S&P 500 rally failed, with oil prices and rising bond yields acting as headwinds. The market debated the extent of the AI stock correction. Alphabet's shares rose on news of a new, more efficient AI chip, Frozen v2, slated for 2028 deployment. Upcoming earnings reports include 3M, GM, and Capital One.
Japanese government bond yields have reached multi-decade highs, with the 10-year benchmark hitting levels not seen since 1996. This development, driven by BOJ policy normalization and spending concerns, has sparked debate among experts regarding their investability, with some advocating for them while others prefer European bonds.
Financial markets exhibit disconnects, including Japan's 2.7% 10-year bond yield despite high debt, non-investment grade bonds outperforming, and Hong Kong's equity market seeing record fundraising.
Financial markets show disconnects: Japan's 10-year bond yield is 2.7% despite high debt, lower than Germany's. Junk bonds outperform despite risks. Hong Kong's equity market sees record fundraising, diverging from broader trends.
The S&P 500 fell 1.2% after Federal Reserve officials indicated possible interest rate hikes to combat inflation. Despite keeping rates unchanged, the "dot-plot" showing future rate expectations spooked markets, with bond yields rising.
Stock markets rallied Monday, led by the Nasdaq, as oil prices plummeted on news of a US-Iran peace memorandum. This eased inflation concerns, lowered bond yields, and improved the outlook for Fed Chairman Kevin Warsh's first policy meeting. SpaceX's successful IPO also boosted market confidence.
Eurozone bond yields edged up on Thursday as investors awaited oil price movements and escalating Middle East tensions, ahead of the European Central Bank's monetary policy decision. Markets widely expect a 25 basis point rate hike.
Eurozone bond yields edged up on Thursday, nearing recent highs as investors awaited oil price movements and escalating Middle East tensions ahead of the European Central Bank's monetary policy decision. Markets widely expect a 25 basis point rate hike.
The Nikkei index dropped 1.36% on Thursday, its biggest fall in three weeks, as investors sold AI and chip stocks after Broadcom's weak revenue forecast. Renewed US-Iran tensions also hit investor sentiment. Meanwhile, Japanese bond yields rose on inflation fears and expectations of a Bank of Japan rate hike.
Crypto and U.S. stocks declined Wednesday as renewed Middle East conflict pushed Brent crude to a 12-day high of $96/barrel. Rising energy costs sent the U.S. 10-year Treasury yield to 4.5%, signaling inflation concerns.
South Korean Treasury bond yields initially rose following the release of inflation data but reversed course to close lower. The 3-year yield fell 1.7bp to 3.773%, and the 10-year yield dropped 3.9bp to 4.135%. Market sentiment shifted as inflation concerns eased, supported by significant foreign buying of futures.
Renewed Middle East tensions, including Israeli attacks on Lebanon and Iran's threats to close the Strait of Hormuz, are driving up government bond yields across Europe. The Italian BTP 10-year bond saw a significant increase.
Japanese PM Sanae Takaichi's new 3 trillion yen supplementary budget to aid households faces skepticism over debt issuance. Despite assurances, bond yields have risen, with experts questioning the use of calendar-year fiscal policy and the credibility of stated debt plans.
The Nikkei 225 index surged to a record high, surpassing 65,000 for the first time, driven by strong buying in semiconductor and AI-related stocks like SoftBank Group and Kioxia. Falling oil prices also contributed to the rally, while long-term Japanese government bond yields declined.
Hopes for an imminent truce between the US and Iran are curbing government bond yields, though spreads remain unchanged. The BTP-Bund spread widened to 712.8 points, while Italian, German, and French yields fell.
Analyst Shang Wu predicts a Bitcoin "supercycle" driven by rising government bond yields, arguing central banks face a choice between currency debasement or debt collapse. He suggests Bitcoin's inflation-resistant nature will attract investors.
Bitcoin (BTC) fell to $74,190, its lowest in over a month, as higher rate hike odds for 2026 pressured the market. Despite Kevin Warsh, a pro-crypto figure, becoming Fed chair, traders expect rates to remain high, weakening the bullish case for BTC.
South Korean Treasury bond yields dropped across the board on May 22nd. The 10-year yield fell 3.0 basis points to 4.144%, while the 3-year yield decreased 0.8 basis points to 3.745%.
The Iran war is causing stagflation and starvation due to reduced oil and fertilizer supplies, with potential for a global economic shock. Rising bond yields could pop the AI bubble, and petrol prices may reach $10 a gallon this summer.
European stocks rose Wednesday, led by miners and tech, as U.K. inflation eased to 2.8% in April, below economists' expectations. Bond yields fell and the British pound dipped slightly after the data.
Japanese government bond yields, including the 10-year and 40-year, declined from multi-decade highs on Wednesday after a strong auction eased inflation concerns. The government plans new retail-focused bonds to offset the central bank's reduced purchases.
Japanese government bond yields declined Wednesday after a strong auction eased inflation concerns. Meanwhile, the Nikkei stock index closed at a three-week low, led by SoftBank Group, as investors took profits on AI stocks.
