The yen rallied while stocks and bonds slumped in the wake of the Bank of Japan’s unexpected adjustment to its yield-curve control policy. A day that began with listless, mildly downbeat trading in Asia was thrown into turmoil when the BOJ increased the upper limit of its tolerance band on 10-year government bonds to 0.5% from 0.25%. The Japanese currency, which had been appreciating since late October, surged almost 3% versus the dollar to the strongest level since mid-August. US and European equity futures slumped and Asian stocks extended declines, with a gauge of regional shares headed for a fourth straight drop. Japan’s 10-year yield, which had moved at a glacial pace in recent years under the weight of the BOJ’s YCC regime, surged more than 20 basis points, to the highest since 2015.
Similar-maturity yields in Australia were up by around the same amount while the 10-year Treasury yield leaped 10 basis points for a second day. A gauge of the dollar dropped as the yen rallied. Then yen also showed notable gains against currencies including the euro and the Australian dollar. Equities were already on the back foot given broader investor concern on the global inflation outlook. Underscoring the poor global sentiment, former New York Fed President and Bloomberg Opinion columnist William Dudley told Bloomberg Television on Monday that optimistic markets could only make the central bank tighten even more. In commodities, iron ore was among the key industrial materials to climb after a pledge of growth support from Beijing authorities. Oil steadied, with West Texas Intermediate above $75 a barrel, and gold rose. US After Hours STLD +0.7% as it will join S&P 500; TRDA -32.1% falls as FDA places clinical hold; CPRX +3.6% to acquire US rights for FYCOMPA.
Nikkei -2,46% Hang Seng -1,72% CSI -1,52% Shanghai -0.98% Shenzen -1,05%
Eur$ 1,0597 CNH 6,9836 CNY 6,9836 JPY 133,35 GBP 1,2127 CHF 0,9297 RUB 67,2155 TRY 18,6465 WTI$ 75,51 +0,43% Gold 1,792 +0,26% BTC 16,800 +1,29% ETH 1,210 +2,91%
S&P -0,70% Nasdaq -0,86% EuroStoxx -1,31% FTSE -0,72% Dax -1,34% SMI -0.50%
Macro :
- Kuroda Doesn't Expect Further Widening of Yield Band
- EU Sets Gas-Price Cap at €180 in Effort to Stem Crisis
- China Covid Death Reports Spread Amid Virus Data Black Box
Keep an eye on :
Keep an eye on :
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