Japan: With Bond Yields at 9-Year High, Is Crypto in Jeopardy?
The Bank of Japan announced a hawkish twist to its Yield Curve Control [YCC] program today. The government said that it would offer to buy 10-year bonds at 1% in fixed-rate operations. Previously, the figure stood at 0.5%. The surging inflation in 2023 has put pressure on the BoJ to shred its seven-year policy of buying bonds to suppress yields. On the back of the latest announcement, the 10-year Japanese Government Bonds’ [JGB] yield rose to 0.572%, the highest level recorded in almost nine years. The yen went on to briefly strengthen its position against the dollar by creating a daily high of 0.007242. Source: Financial Times Typically, the rise in bond and currency yields is not optimistic for crypto , given the inverse relation they share. The latest rise is theoretically detrimental to Bitcoin. For the most part of 2023, the Yen has lost value. BTC, on the other hand, has almost doubled in value. The latest uptrend initiated by the Japanese currency has coincided with Bi...