小盈学姐
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Japan's interest rate hike stabs the US! Warning of a collapse in 38 trillion USD in Treasuries, is the crypto world a safe haven for funds?
Family, look at this big news! The Bank of Japan is set to raise interest rates in December, aiming for 0.75%, a new 30-year high, directly giving the US a 'stabbing blow', and 38 trillion USD in Treasury bonds are completely panicking!
Who would have thought that Ueda Kazuo's moves would be so ruthless! To curb inflation and save the yen, he has been raising interest rates since the end of negative interest rates in 2023, and now the market fully anticipates another 25 basis points increase in December. But this cut hurts the US the most—after 30 years of yen carry trade, it's now gone cold. In the past, Wall Street borrowed low-interest yen to buy US Treasuries and made easy profits, but now the interest rate differential is zero. Japan has 1.2 trillion USD in Treasuries that they can sell at will, and the yield on 10-year US Treasuries has directly broken 4.09%!
Who would have thought that Ueda Kazuo's moves would be so ruthless! To curb inflation and save the yen, he has been raising interest rates since the end of negative interest rates in 2023, and now the market fully anticipates another 25 basis points increase in December. But this cut hurts the US the most—after 30 years of yen carry trade, it's now gone cold. In the past, Wall Street borrowed low-interest yen to buy US Treasuries and made easy profits, but now the interest rate differential is zero. Japan has 1.2 trillion USD in Treasuries that they can sell at will, and the yield on 10-year US Treasuries has directly broken 4.09%!
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