In a surprise move, the Bank of Japan (BOJ) made the decision to widen the trading band on 10-year bond yields to 0.25-0.50%.  This move caused a surge in the Yen (+3% vs. the Dollar) and pronounced weakness in Asian equity markets.  Although there has been a move higher in global bond yields, the U.S.  non-Asian equity market reaction has been relative muted given the recent weakness and that global central banks have already been raising rates throughout the year.  My friend Jon Ferro at Bloomberg stated it perfectly by qualifying the BOJ continued easy monetary policy this year as “the ostrich policy” given the hawkish nature of all the other global central banks to fight inflation.    

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