Global Markets Brace as BoJ Signals December Rate Hike

[bonk]

All eyes are on the Bank of Japan ahead of its December 18–19 policy meeting. Markets now price a 90% chance of a 25 bps rate hike. Japan’s 2-year and 10-year yields have surged to multi-decade highs, raising fears of a renewed unwinding of the yen carry trade—a strategy that has fueled global risk assets for decades.
Analysts warn that a repeat of August 2024 is possible, when a BoJ hike triggered a $600B crypto wipeout and sent BTC plunging to $49K.

[Abdul Khan]

BoJ tightening could shake global markets more than many expect.