From Bloomberg, December 6/7:
Stocks and Bonds Churn as BOJ Rattles Traders: Markets Wrap
- Investors bet higher Japan rates may come sooner than expected
- Gold climbs and Bitcoin falls as markets turn risk-off
Stock and bond markets fluctuated, while the yen surged the most in three months amid renewed speculation that the Bank of Japan will soon scrap the world’s last negative interest-rate regime.
S&P 500 futures were little changed and 10-year Treasury yields added five basis points. The yen strengthened 1.6% against the dollar and Japanese bonds sold off sharply, with the rate on the 10-year note jumping 12 basis points.
The move was another jolt to the global government rally, raising further doubts that central banks are ready to pivot toward rate cuts. In Japan, comments from BOJ Governor Kazuo Ueda on more challenging policy ahead caused traders to shift interest-rate bets, with overnight-indexed swaps at one point on Thursday showing an almost 45% chance that the BOJ would end its negative interest rates policy at this month’s meeting....
....MUCH MORE
The linked piece is headlined: "Traders Pile Into Bets That End of Negative BOJ Rate Is Near"
- Swaps show as much as an almost 45% chance of December tweak
- Deputy Himino’s remarks spur talk of ‘live’ December meeting.
The pattern being traced out on the Nikkei 225 Index chart is almost majestic:
The dome is very rounded, almost Roman.
Looking ahead all it needs now is a few days of relief rally to create a nice shoulder to shrug.
Sometimes I think this chartology stuff is as much a Rorschach as anything, you see what you want to see..
