Bond Selloff Pauses as Traders Watch for Yen Intervention
Global bond markets paused their selloff, while equity indices moved sideways in early European trade. Investors are closely monitoring potential Japanese intervention to support the yen after it surged more than 1% against the dollar to a near one-month high. Markets currently price in a 77% chance of a Bank of Japan rate hike later this month. U.S. Treasury yields fell slightly following comments from New York Fed President John Williams, who indicated no urgency for further interest rate hikes. Yields on both 10-year and 30-year Treasurys declined by small margins after reaching recent highs earlier in the week. Eurozone and U.K. government bonds also moved lower alongside their American counterparts. Equity futures showed minimal movement, with slight gains noted for Dow Jones Industrial Average contracts while S&P 500 and Nasdaq futures remained flat. Asian stock indexes rose broadly, particularly benefiting from a bullish outlook on chip sales by Broadcom.
Topics: BOJ policy bond selloff interest rates Treasury yields yen