Rising Bond yields dominated the market movement yesterdays as investors call the Feds bluff with the Fed’s interest rate hike expectations. Bank of Japan’s decision to widen its 10 year yields unsettled the market during its Monetary policy statements.
Post the BOJ announcement JPY strength came into the market against the major currencies. There is still EUR strength in the market as it continues to strengthen against the CAD, with Retail sails coming out of Canada with a forecast higher than last month the CAD will be something to keep an eye on.
As Bond yields blew through the ceiling we saw a strong selloff in the Nasdaq and S&P that both closed negative for the day, Dow saw another record high before retracing to close the day below its opening price.
Gold also bears the brunt of the continued bond yields before finding support on 1720 to close the day out on 1736. Brent sold off aggressively as markets questioned the rate of economic recovery, closing out the day at $62.60 from its open of $67.60.
Tentative - Monetary Policy Statement (JPY)
2:30pm - Core Retail Sales m/m (CAD)
2:30pm - Retail Sales m/m (CAD)