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[Japan's Rate Hike Signal Pushes Bond Yields Higher, Raising Concerns Over Fed Rate Cut Outlook] On December 2, Bank of Japan Governor Kazuo Ueda hinted at a possible rate hike this month, driving Japan's 10-year government bond yield to 1.879%, the highest level since June 2008. As a result, the U.S. 10-year Treasury yield also rose to 4.095%. Japan, as the largest foreign holder of U.S. Treasuries, may trigger a repatriation of funds from U.S. Treasuries and other overseas assets if it tightens monetary policy, potentially disrupting the downward trend in U.S. Treasury yields and causing global market volatility. Wall Street is concerned that rising U.S. Treasury yields will hinder the Federal Reserve's rate cut outlook, affecting mortgage rates and stock market performance. As of September, Japan held approximately $1.2 trillion in U.S. Treasuries.