Global bond markets stabilized Thursday as 10-year Treasury yields dipped to 4.99% following the Fed's rate hike, while traders pivot focus to the upcoming Bank of Japan policy decision.
US 10-year Treasury yields fell three basis points to 4.99%, ending eight days of gains, as the Fed's rate hike and Warsh's inflation stance calmed the market.
The Bank of Japan is expected to raise rates to 1.25%, and Treasury Secretary Bessent supported Japan's actions to address the yen's undervaluation, implying yen appreciation.
Australian 10-year bond yields declined three basis points, part of a global bond recovery.
Escalating Middle East tensions drove up oil prices, fanning inflation expectations and contributing to the bond market pressure.
Japanese 10-year bond yields fell marginally as investors awaited the BOJ decision.
Global bond yields retreated Thursday, snapping an eight-day rally as markets digested the Federal Reserve's latest interest rate hike. While 10-year Treasury yields fell three basis points to 4.99%, investors remain cautious as inflation concerns persist and the Bank of Japan prepares for a widely expected rate increase to 1.25%.
Yields retreated as the market reacted to the Fed's decisive action to curb inflation, which helped calm volatility following eight days of consecutive gains in Treasury yields.
All analysts surveyed by Bloomberg expect the Bank of Japan to raise its policy rate to 1.25% from the current 1% level.