US Treasury yields surged to multi-year highs on Wednesday, driven by growing expectations of further Federal Reserve rate hikes, strong US business activity data, and a weak Treasury bond auction, according to FX Street. This increase in yields has pushed the Canadian Dollar lower against the US Dollar for the fourth straight day, FX Street reported, as investors adjust to the prospect of tighter US monetary policy.
Gold prices also declined, sliding to a one-week low around $4,260, down nearly 0.65% on Thursday, FX Street noted. Meanwhile, Bitcoin fell below $84,000, trading near $83,200 as the market priced in roughly a 75% probability of additional Fed tightening. CoinTelegraph highlighted that the US Treasury is preparing a $6 billion buyback of long-dated bonds, while CoinDesk reported traders are now expecting four Fed rate hikes by June 2027.
For Japanese investors, these developments underscore the ongoing volatility in FX and crypto markets amid shifting US monetary policy, which could impact carry trades and risk appetite in the region.