[DigitalToday reporter Chi-gyu Hwang (황치규)] Japan's shrinking bond market is delivering a major shock to cryptocurrencies and global stock markets, CoinDesk reported on Tuesday.
The report said yields on Japanese government bonds (JGBs) are surging, roiling markets. Ole Hansen, Saxo Bank's head of commodity strategy, said, "Rising Japanese bond yields mean a global liquidity crisis has begun in earnest." Japan's bond market has been stable since the 1990s, but it has entered a new phase as yields have surged recently. The 30-year JGB yield jumped 31 basis points in a day to 3.91 percent, sending markets into panic, CoinDesk reported.
In the fallout, Japan's Nikkei index tumbled 2.5 percent and U.S. stock index futures fell 1.5 percent. The cryptocurrency market also wobbled, with bitcoin falling below $90,000. Gold, meanwhile, rose 3 percent to break above $4,700 an ounce, and silver jumped 7.5 percent, threatening $100.
Chi-gyu Hwang
delight@d-today.co.kr