Asian Markets: Yuan Hits Multi-Year High as JGB Yields Surge Amid Japan-China Tensions

Key TakeawaysThe People's Bank of China (PBOC) fixed the Yuan midpoint at its strongest level since May 11, 2023, signaling a potential shift in Beijing's tolerance for currency appreciation.Japan’s 40-year government bond (JGB) yield surged 5 basis points to 3.565%, reflecting investor anxiety over the Bank of Japan's (BOJ) long-term interest rate trajectory.Bilateral relations between Japan and China face a "deep freeze" risk, as geopolitical friction under Prime Minister Sanae Takaichi threatens to spill ...