Goldman Sachs: Non-farm payrolls better than expected; if Friday's CPI unexpectedly rises, it could turn the Fed hawkish

Japanese Yen Rate Hike Hopeless? Japanese Bonds Collapse with "Yields at 27-Year High," Strait of Hormuz Conflict Strangling Japan's Economy

Japan's 10-year government bond yield rose to 2.32%, approaching a 27-year high, with markets concerned that geopolitical tensions will impact the economy and crypto markets. Trump's 48-hour ultimatum to Iran has sent energy prices soaring, and Japan's critical crude oil shipping routes face threats, potentially worsening inflation. The Bank of Japan faces a dilemma between rate hikes and economic recovery, while rising yields could trigger investor liquidations, impacting risk assets like Bitcoin.

Trump Issues Ultimatum to Iran! Reopen Strait of Hormuz Within 48 Hours, Global Assets Under Pressure Simultaneously

US President Trump issued an ultimatum to Iran, threatening to destroy its power plants and demanding the reopening of the Strait of Hormuz. Iran responded by blockading the strait, causing market volatility due to geopolitical tensions. US stock futures declined, crude oil prices soared, and gold fell due to a strong dollar, demonstrating the market's lack of resilience to crisis.

Federal Reserve Spokesperson Warning: Warsh Taking Over Fed Full of Pitfalls, Powell Refuses to Step Down, Iran Conflict Prompts FOMC to Reject Rate Cut

The transition of the Federal Reserve Chair has fallen into a deadlock. The incoming Chair, Kevin Walsh, faces challenges such as rising oil prices, inflationary pressures, and the incumbent chair's refusal to step down, making the transfer of power more difficult than expected. Market expectations for rate cuts are waning, risk assets are under short-term pressure, and Walsh will encounter a vastly different situation upon taking office compared to the past.

Iran Announces "Selective Passage" in Strait of Hormuz, Bessent Declares War: Trading 50 Days of US Price Increases for 50 Years of Middle East Peace

Iran's Foreign Ministry stated that the Strait of Hormuz is not closed, but will intercept U.S. and Israeli vessels, which triggered a market oil price surge and revised inflation expectations upward. The U.S. Treasury Secretary stated that short-term price increases are the price to pay for long-term peace in the Middle East. The cryptocurrency market has also suffered a severe downturn, with both Bitcoin and Ethereum experiencing significant declines.

Goldman Sachs raises 2026 Brent crude oil price forecast to $85 per barrel, expecting oil prices to remain elevated

Goldman Sachs expects high oil prices to persist, with low petroleum flow through the Strait of Hormuz continuing for six weeks, leading to sustained long-term price increases. Brent crude oil average price is expected to rise to $85 per barrel in 2026.

Japan's government bond yields approach multi-decade highs, with 10-year bond yields rising to 2.32%

On March 23, Japanese government bond prices fell, with yields rising to their highest levels in decades. Market concerns over escalating Middle East conflicts pushed inflation expectations higher. The 10-year government bond yield reached 2.32%, approaching historical highs, while the 5-year government bond yield also neared its highest levels since listing. U.S. Treasury yields also rose.