Bonds and Bitcoin Find Stability as Global Stocks Edge Higher

AsianForexHub Market Pulse

• Markets steady after JGB-driven volatility
• Bitcoin still 30% below October high
• Yen weaker but intervention fears ease
• Fed rate cut expectations firm
• Gold, silver lower; oil steady

Global stocks posted muted gains on Tuesday while cryptocurrencies and government bonds found stability after Monday’s sell-off triggered by expectations of a looming rate hike in Japan.

S&P 500 futures held steady, with European and Asian stocks ticking higher. Market sentiment improved following a strong Japanese government bond (JGB) auction, easing concerns that had pushed Japanese 10-year and 30-year yields to multi-decade highs.

The heavy JGB sell-off had spilled into global markets on Monday, pushing U.S. 10-year yields nearly 8 bps higher and German 10-year Bund yields up nearly 6 bps, weighing on equities.

Track global risk sentiment across stocks, bonds and crypto in real time.

Bitcoin Down 30% From October Peak

Bitcoin edged higher on Tuesday after a sharp 5.2% drop on Monday, though it remains 30% below its October record at around $87,000.

Samy Chaar, chief economist at Lombard Odier, said markets remain:
“Pretty stable… with few negative surprises.”

Jehan Chu of Kenetic Capital noted that crypto sentiment has shifted to “fearful and resigned,” with recent declines catching investors off guard.

FX and Economic Data

The Japanese yen weakened slightly on Tuesday, with USDJPY up 0.35% to 156.0. The dollar also stabilized after Monday’s drop that briefly lifted the euro above $1.165 before pulling back to $1.1605.

Some investors expect a more sustained decline in the dollar as the U.S. moves toward faster rate cuts than its peers.

Monday’s U.S. data reinforced expectations for a December Fed rate cut, with manufacturing contracting for the ninth straight month, despite strong consumer spending led by $23.6 billion in online holiday sales.

Commodities

• Gold down 1%, back below $4,200
• Silver down nearly 2%
• Brent crude steady at $63.10
• WTI at $59.21

Follow interest rate expectations and macro shocks affecting markets.