Japan's Two-Year Bond Yield Hits 2% Hurdle Amid BOJ Rate Hike Bets

Japan's two-year government bond yield has reached its highest level since 1995, climbing to 1.975%. This move indicates growing expectations that the Bank of Japan will raise interest rates again.

The increase in yields is part of a broader trend, with Japan's five-year government bond yield also rising to 2.43%.

This development has significant implications for global markets, particularly for US crypto and markets investors who engage in yen-funded carry trades.

These trades involve borrowing in yen to invest in higher-return assets, and a shift in those trades can affect global rates, liquidity, and risk appetite, including in crypto markets.