# Morning Bid: Japan's dramatic FX, bond market divergence

> After the Bank of Japan scrapped the 1% ceiling on 10-year government bond yields, the yen fell to a new one-year low against the dollar and a 15-year low against the euro. The story compares this with pressure on the yuan.

- Date: 2023-10-31 · published 2023-10-31T12:00:00.000Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/33868-morning-bid-japan-s-dramatic-fx-bond-market-divergence
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A sharp yen decline strengthens the dollar against major Asian currencies, which can lower the local-currency cost of U.S. feed imports for Japan while pressuring import-dependent Asian buyers' margins.

## Read by commodity

- EURUSD: bearish ▼
- USDJPY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2021-03-07 | [Bond market volatility sees AUD plunge overnight - OFX](https://feedsoft.ai/events/48363-bond-market-volatility-sees-aud-plunge-overnight-ofx.md) | +0.3% | -1.3% |
| EURUSD | 2024-04-12 | [FX Daily: From Fed dependence to Fed divergence \| articles \| ING THINK](https://feedsoft.ai/events/9972-fx-daily-from-fed-dependence-to-fed-divergence-articles-ing-think.md) | -0.6% | +0.5% |
| EURUSD | 2025-01-24 | [Bond Market Selloff and Trump Concerns \| Global Banking & Finance Review](https://feedsoft.ai/events/12679-bond-market-selloff-and-trump-concerns-global-banking-and-finance-review.md) | 0.0% | +0.3% |
| EURUSD | 2021-02-26 | [EXCLUSIVE ECB's Stournaras calls for increasing bond buying to calm markets](https://feedsoft.ai/events/9589-exclusive-ecb-s-stournaras-calls-for-increasing-bond-buying-to-calm-markets.md) | -1.5% | -3.7% |
| EURUSD | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | -0.6% | +0.5% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-pix-2023-10-31/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.