US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
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Asian share markets rebounded on Friday, tracking a recovery on Wall Street as a turnaround in technology stocks boosted global risk sentiment. Investors, however, remained cautious ahead of a widely anticipated interest rate hike from the Bank of Japan (BOJ), a move that could trigger volatility in currencies and bond markets.
Market sentiment was also supported by a surprise slowdown in U.S. consumer price inflation, which eased to 2.7%. While the softer inflation print briefly lifted confidence, analysts warned the data may be distorted by the recent U.S. government shutdown and should not be taken at face value. As a result, expectations for Federal Reserve rate cuts shifted only slightly, with markets pricing in a 27% chance of a cut in January and a 58% probability by March.
Attention in Asia remained firmly on Japan, where markets are pricing in around a 90% chance that the BOJ will raise interest rates by 25 basis points to 0.75%. Investors currently expect only one additional rate hike to 1.0% in 2026, but any signal of faster policy normalization could strengthen the yen while adding pressure to Japanese government bonds. Japan’s latest data showed core consumer inflation holding steady at 3.0% in November, well above the BOJ’s 2% target.
Japan’s Nikkei index rose 0.6%, while South Korean shares climbed 1.2%, supported by strong earnings from chipmaker Micron Technology. The broader MSCI Asia-Pacific index outside Japan gained 0.2%. U.S. stock futures were flat after overnight gains, and Treasury yields steadied near recent highs.
In global markets, central banks sent mixed signals. The Bank of England cut rates by a narrow margin, while the European Central Bank maintained a more hawkish stance, dampening expectations for further easing. Currency markets were largely stable, with the dollar steady against the yen.
Commodities were mixed, as gold prices hovered below recent highs, oil edged higher on geopolitical risks, and industrial metals showed continued demand.
