Japan’s rate shock deepened on Tuesday with the 30-year government bond yield approaching its all-time high of 4.205% and the 10-year reaching 3% for the first time since 1996. US Treasury Secretary Scott Bessent publicly pressed for hikes at the G20, pushing yen carry trade costs to 31-year highs. Global bond markets followed with UK 10-year gilts at 5.23%, US 10-year Treasuries at 4.78%, and Brent crude above $92 per barrel. The Bank for International Settlements estimates yen carry trade at roughly $750 billion, with Bitcoin and Ethereum shedding up to 20% during the August 2024 unwind. The Bank of Japan decides on September 18 with markets pricing a quarter-point move to 1.25%.
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