© Reuters. FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo
A look at the day ahead in U.S. and global markets from Mike Dolan
Plummeting bond yields and oil prices clawed back some of the week’s dramatic falls on Thursday, while a burst of speculation about a Bank of Japan policy tightening this month cut across the interest rate optimism and catapulted the yen higher.
The size and slightly erratic nature of this week’s macro market moves may speak a little to yearend markets both squaring off books and jockeying for position for 2024.
But a stream of softer labor market and inflation news – not least an oil price plunge to 6-month lows on booming supplies – has been relentlessly positive for bonds along with clear signs of central bank policy shifts going into next year.
Too far, too fast? Ten-year Treasury yields plumbed three months lows near 4.1% on Wednesday and money markets are pricing well over 100 basis points of central bank rate cuts next year.
Ten-year U.S. yields recaptured about 6bp of the 25bp drop over the past…
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