Japan’s Bond Yields Hit 1.98%: BOJ Rate Shift Impacts Gold, Silver, and Bitcoin

Japan's 10-year government bond yields surged to 1.98% ahead of the Bank of Japan's (BOJ) December 19 policy meeting, the highest level since the 1990s. This shift, which may include a 25-basis-point hike, threatens the long-standing yen carry trade, where investors borrowed cheap yen to fund global assets, potentially draining market liquidity. The market reaction is divergent: precious metals like gold and silver have rallied significantly, tracking Japanese yields as investors view them as hedges against rising sovereign risk and tighter global liquidity. Conversely, Bitcoin is under pressure, experiencing forced selling across Asian exchanges as carry trades unwind, with analysts noting historical correlations between BOJ hikes and BTC declines, potentially targeting $70,000.

(Source：BeInCrypto)