Which rate move triggered selloff today?

TLDR

The selloff today was triggered by a spike in Japanese government bond yields as markets priced a near?term Bank of Japan rate hike, pushing global rates higher and risk assets lower.

1. Japanese yields hit their highest since 2008, raising carry?trade unwind risks and amplifying risk?off sentiment (Yahoo Finance).
2. The US 10?year rose about 3 basis points to around 4.04%, adding valuation pressure (Yahoo Finance).
3. Bitcoin fell over 5% alongside weaker equity futures as risk appetite deteriorated (CNBC market update).

Deep Dive

1. BOJ Hike Signals

Markets increasingly expect the Bank of Japan to raise rates in December, lifting Japanese yields to their highest levels since 2008. This matters because when JGB yields rise, the yen carry trade can unwind, spilling over to global risk assets. The days risk?off tone is consistent with that pressure (Yahoo Finance, CNBC context).

2. US Rates Uptick

US Treasury yields ticked higher with the 10?year around 4.04% (up ~3 bps), reflecting the global rate impulse and unsettled Fed?cut expectations. When discount rates rise, equity and crypto valuations face headwinds, particularly for long?duration growth and momentum segments (Yahoo Finance).

3. Risk?Off Across Crypto

Crypto led the decline, with Bitcoin down over 5% and US equity futures weaker into the session. Several outlets tied the slide to rising yields and BOJ hike expectations, consistent with prior episodes where global rate shocks hit risk assets first through liquidity and leverage channels (CNBC market update, Finbold summary).

Conclusion

Todays selloff traces to a rate shock: Japanese yields surged on BOJ hike expectations, nudging US yields higher and flipping markets to risk?off. In this setup, higher global rates reduce risk appetite, with crypto and equities reacting first via liquidity and valuation sensitivity.