- After a surprising hawkish move from the Bank of Japan sent the yen surging and fueled anticipation that it would join its counterparts worldwide in raising interest rates, Treasury yields increased and US market futures oscillated in bumpy trade.
- Stock futures on the S&P 500 and NASDAQ stabilised after sharp initial declines as investors focused on this week's housing and jobs data that may confirm the US economy is slowing down and give the federal reserve more room to raise interest rates. European shares also partially recovered from their initial declines thanks to gains in bank stocks.
- The 10-year treasury yield increased by 6 basis points, and bonds from Australia to Germany also experienced a decline. In the meantime, bond yields remained high. Analysts predict further losses because major Japanese investors in US and EU debt now have greater incentives to send money home.
- After a decade of extraordinary stimulus, many economists now anticipate that the BoJ will increase interest rates in 2019, joining the Federal Reserve, the European Central Bank, and others.
