Global markets were shaken overnight after the Bank of Japan unexpectedly expanded the cap on the 10-year Japanese government bond yield, triggering a sell-off in global bonds and stocks .
Foreign exchange market
In the foreign exchange market, the yen soared against 10 major currencies. The unexpected policy of the Bank of Japan produced zhaiquan. This is the largest appreciation of the yen against the US dollar since 1998, reaching 130.58 yen, an increase of 24.6%. Subsequently, the dollar index fell.
Outsiders expect that the exchange rate between the US dollar and the Japanese yen may return to 120 yen per US dollar.
U.S. Treasury bonds
This move will increase the volatility of the Bank of Japan's expansion of long-term interest rates. As a result, investment funds will return to Japan, which will cause U.S. Treasury bonds to fall further.
crude oil
New York crude oil futures prices continue to rise. People realize that demand for energy may increase as the dollar weakens and China emerges from the disruption of the epidemic.
It is expected that in the future, the crude oil price settled in US dollars will rise steadily.
International gold prices
New York gold futures prices rebounded. The Bank of Japan's shock weakened the U.S. dollar, which further pushed up the price of international gold .
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