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The Bank of Japan unexpectedly raised its cap on 10-year yields to around 0.5% from 0.25%, surprising every economist surveyed by Bloomberg. Japanese government bonds and Treasuries fell, while the yen rose sharply.
The fallout reached US stock-index futures, the Australian dollar and gold.
Global bond sell-offs and a stronger yen tighten financial conditions and raise borrowing costs for commodity traders and processors. This can weigh on demand for hedging and storage financing across grains and oilseeds.
bloomberg.comMasaki Kondo, Ruth CarsonJan 1, 2023Not enough comparable past events yet for a historical read.
After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
