Bank of Japan Governor Kazuo Ueda's hawkish signal of a potential December rate hike strengthens the yen, prompting a rapid unwind of the yen carry trade. Investors, who borrowed cheap yen to fund high-yield bets in US Treasuries and risk assets like crypto, now face higher borrowing costs and currency losses. This forces mass selling: US Treasuries plummet (yields spike to 4.09%), eroding bond prices, while liquidity drains from speculative crypto markets, triggering Bitcoin's 8% plunge amid global risk-off panic.
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From May 29th to 31st, 2025, US Treasury Secretary Janet Yellen will visit China and participate in the 12th round of the China-Us High-level Economic Dialogue. Previously, the United States claimed that China did not manipulate its exchange rate. Yellen said that the "de-risk" approach between China and the United States was more precise than "decoupling". However, at the same time, measures such as restrictions on investment in China within the United States still exist. This contradictory attitude has drawn attention to the direction of economic relations between China and the United States
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