Another day of big reversals on Wall Street, with stocks posting their best week since June after a treasury rout stalled. The yen rose after reports that Japan may have intervened once more to support the currency.
It's no surprise that all the drama in the world's largest bond market would dictate sentiment at a time when traders have been obsessed with the outlook for interest rates. After being all over the place in early trading, stocks rose sharply as bond yields fell from multiyear highs.
The next step in the US central bank's anti-inflation campaign will be to debate how high to raise interest rates and when to slow the pace of increases. St. Louis Fed President James Bullard and his San Francisco counterpart Mary Daly both stated that they expect the discussion to be on the table at the November meeting, while emphasising the importance of continuing to tighten.