Masahiko Loo, Senior Fixed Income Strategist at State Street Global Advisors, stated that the yen's exchange rate rising above 160 is no longer just a valuation issue, but is gradually becoming a policy concern. Washington and Tokyo have, in fact, drawn a political red line at the mid-160 level.

On Tuesday, following Federal Reserve Governor Waller’s call to consider a 50 basis point rate hike at the December meeting, this year’s FOMC rotating voting member Lorie Logan reiterated a hawkish stance, stating, "Given the current economic outlook, I believe at least two more rate hikes of 25 basis points each are needed. The pace of rate hikes this winter may be faster than what we have seen so far this autumn." On Tuesday, the two-year US Treasury yield jumped 19 basis points in a single day, reaching 4.74%.