Financial Markets Daily Report21 December 2022
In yesterday’s session, monetary policy tightening from the main central banks continued to center the stage in financial markets. The Bank of Japan surprised with its decision to increase the range of tolerance around its yield curve control tool. The ten-year sovereign yield rose 25bp towards 0.50% and the JPY appreciated markedly.
- In yesterday’s session, monetary policy tightening from the main central banks continued to center the stage in financial markets. The Bank of Japan surprised with its decision to increase the range of tolerance around its yield curve control tool. The ten-year sovereign yield rose 25bp towards 0.50% and the JPY appreciated markedly.
- In the euro area, several Governing Council members spoke out about the need to continue rising interest rates in the coming months. In particular, the presidents of the central banks in Estonia and Slovenia explained that the pace of tightening "can't slow down" and that it is important to reach sufficiently restrictive levels to bring down inflation.
- In this context, yields on sovereign bonds rose in the euro area, despite the lower-than-expected producer prices inflation data in Germany, and peripheral spreads remained broadly contained. In stock markets, equities were mixed.
- Today the focus will be on December Conference Board consumer indices in the US.