Markets rebounded cautiously today after a volatile start to the month. Japanese government bond yields surged to multi-decade highs following hints from BoJ Governor Ueda of a potential rate hike, triggering declines in equities and Bitcoin, while gold and silver advanced. The 10-year JGB auction performed well, stabilizing the bond market, while US 10-year yields remain near 4% and the USDJPY is recovering.
Bitcoin tested key support near $83K, and US economic data indicate ongoing weakness, with factory activity and orders contracting and employment softening. Holiday retail sales rose largely due to inflation. In technology, Nvidia’s $2bn investment in Synopsys, alongside OpenAI’s Thrive Holdings initiative, suggests a developing AI ecosystem. Investors are left to consider whether this cautious rebound can be sustained, or if further volatility lies ahead. Watch the full episode to find out more!
