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As the Treasury yields bounce, the top market indices also have their share of mixed performance, and the crypto industry continues to wallow in losses.
After recording a sell-off earlier in the week, the US Treasury yields have declined as investors return to the bond market. An unexpected move by the Bank of Japan in tweaking its yield curve controls sparked global bonds to sell off earlier in the week. Meanwhile, the financial institution took the step to shield the impact of protracted monetary stimulus measures. On the other hand, economics said the tweak was necessary.
US Treasury Yields Fall
US treasury yields dropped, with the 30-year Treasury bond falling 3.4 basis points to 3.7103%. Also, the 10-year Treasury note declined 3.9 basis points at 3.6452%. Also, the yield on the 2-year note dipped 1 point to 4.2037%.
Notably, the US treasury yields on a 2-year note slumped on Wednesday amid the surprise policy shift from the Bank of Japan, which stretched its target range for 10-year Japanese government bond yields. Additionally, the tweak in its yield curve control policy permits the yield on the 10-year Japanese government bond to move from 25 basis points to 50 basis points. The yield curve control came to light in 2016 with the central bank planning to move inflation to its 2% target. This is after a long period of ultra-low inflation and economic stagnation. According to the Bank of Japan, the recent tweak was to “improve market functioning and encourage a smoother formation of the entire yield, vehicle maintaining accommodative financial considerations.”
Coinspeaker recently wrote about the Treasury yields rebound and setting the pace for the stock market growth. In addition to the Federal Open Market Committee (FOMC) raising interest rates to their highest level in 15 years at 50 basis points, the increment is affecting the government’s struggle to combat inflation in America. Before the 50 basis point rise, the Feds had increased the interest rates by 74 basis points on about 4 different occasions.
As the Treasury yields bounce, the top market indices also have their share of mixed performance, and the crypto industry continues to wallow in losses. With a market capitalization of about $324 billion, Bitcoin is currency down 0.07% to $16,855. Similarly, the second largest crypto asset Ethereum, the cryptocurrency has shed 29.68% in its 24-hours trading volume and trades at $1,218.