Expectations rise for rate hikes by the U.S. and Japan's central banks; 10-year Treasury yields reach 4.530%.

KuCoinFlash

Release Time: 05/17/2026 04:15:38

Summary

CFT concerns and liquidity in crypto markets remain under pressure as the U.S. and Japanese central banks raise expectations for rate hikes. The U.S. 10-year Treasury yield reached 4.530%, a one-year high, fueled by Fed leadership changes and strong macroeconomic data. A June BOJ rate hike is now 80% likely according to Polymarket. Market unease over U.S.-Iran tensions and SpaceX’s funding is also weighing on liquidity and crypto markets. Risk assets face near-term headwinds.

BlockBeats news: As of Friday's close on May 17, the U.S. 10-year Treasury yield surged to a one-year high of 4.530%, surpassing the policy turning point of 4.50% that Trump had previously intervened on multiple occasions.

On the other hand, changes in Federal Reserve leadership and macroeconomic data have fueled expectations of rate hikes, with rate cuts appearing to be entirely off the table. Meanwhile, markets are already heavily pricing in a rate hike by the Bank of Japan in June (with an 80% probability on Polymarket).

In addition, SpaceX's massive fundraising and the renewed uncertainty surrounding the U.S.-Iran conflict will also significantly impact market liquidity and confidence.

Considering the above factors, risk assets are likely to face significant short-term pressure; without decisive measures to reverse the trend, Friday's broad decline may only be the beginning of a larger correction.

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