# Global Markets Jolted as BOJ Surprises With Yield Policy Change

> 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.

- Date: 2023-01-01 · published 2023-01-01T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/38467-global-markets-jolted-as-boj-surprises-with-yield-policy-change
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bearish ▼
- USDJPY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-03 | [GLOBAL MARKETS-Stocks slide, 10-year Treasury yield hits record low after Fed's emergency rate cut](https://feedsoft.ai/events/7172-global-markets-stocks-slide-10-year-treasury-yield-hits-record-low-after-fed-s.md) | +0.3% | +5.5% |
| DXY | 2017-10-31 | [US Dollar-to-Yen Exchange Rate Uptrend To Continue To Be Supported By BoJ Policy \| Exchange Rates UK](https://feedsoft.ai/events/68683-us-dollar-to-yen-exchange-rate-uptrend-to-continue-to-be-supported-by-boj.md) | -0.2% | -1.4% |
| DXY | 2020-11-05 | [Dollar drops as stocks surge, Fed keeps policy unchanged](https://feedsoft.ai/events/50331-dollar-drops-as-stocks-surge-fed-keeps-policy-unchanged.md) | -0.8% | -2.9% |
| DXY | 2021-03-18 | [Gold gains after Fed maintains easy monetary policy stance - Markets - Business Recorder](https://feedsoft.ai/events/48016-gold-gains-after-fed-maintains-easy-monetary-policy-stance-markets-business.md) | +0.4% | -0.3% |
| DXY | 2022-12-15 | [Dollar falters as investors challenge Fed’s hawkishnes - Markets - Business Recorder](https://feedsoft.ai/events/38421-dollar-falters-as-investors-challenge-fed-s-hawkishnes-markets-business-recorder.md) | +0.4% | -2.2% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2022-12-20/yen-jumps-dollar-sinks-after-boj-surprises-with-policy-tweak

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