Rate hike bets are building for the Fed – and now the Bank of Japan too

A weakening yen, rising bond yields, and the risk of a carry trade unwind pose a headwind to risk assets, including bitcoin. What to know : The yen’s sustained weakness near 160 against the U.S. dollar is increasing pressure on the Bank of Japan to raise rates further. Japanese government bond yields, with the 40 year yield above 4%, signal tightening conditions, and past episodes show higher Japanese rates can trigger sharp crypto sell offs.