Yen steady before BOJ, AI jitters drive Treasury rally and weigh on dollar
TLT•TLT•TLT•TLT•The yen held near 157.815 per dollar ahead of the Bank of Japan’s decision, while the dollar weakened as Treasury yields fell after AI-related stock selling boosted demand for safe-haven bonds. The 10-year Treasury yield was 4.8958%, and the 30-year yield was 5.2623%.
The yen was little changed at around 157.815 per dollar on Friday ahead of the Bank of Japan’s policy decision. The BOJ was expected to hold its rate at 1.25%, while markets priced in about an 80% chance of a December hike.
The dollar tracked US Treasury yields lower as selling in AI shares prompted demand for safe-haven bonds. The 10-year Treasury yield stood at 4.8958% and the 30-year yield at 5.2623%, both their lowest in more than a month.
The European Central Bank, US Federal Reserve and Reserve Bank of New Zealand left rates unchanged during the week. ANZ’s Khoon Goh said the global tightening cycle was likely to continue, while investors were also watching the Bank of England and Reserve Bank of Australia decisions next week.
