Overview
- Bank of Japan Governor Kazuo Ueda signaled rate increases could come sooner, pushing Japanese government bond yields to multi‑year highs and lifting the yen.
- Two‑year JGB yields topped 1% for the first time since 2008 and the 10‑year touched 1.88%, moves that prompted a reassessment of risk exposure.
- Bitcoin slid from about $93,000 to near $85,000 after the BoJ comments and later traded around $92,235 as traders weighed policy risks.
- Markets see a high probability of BoJ tightening at the December 18–19 meeting, while attention also turns to the December 9–10 FOMC with elevated odds of a Fed cut.
- Crypto sentiment remains fragile following sizable ETF outflows and sector setbacks involving MicroStrategy’s leverage and a Tether credit downgrade, despite a brief lift from Japan’s $135 billion stimulus.