BOJ Jitters Shake Global Markets as Treasury Yields Climb
Treasury yields rose as speculation grew that bets on rate cuts by major central banks have gone too far, with hawkish signals from the Bank of Japan rattling global bonds. Traders are awaiting Friday's US jobs report, which will test the market's aggressive dovish repricing. Signs of exhaustion have emerged after the bond market's strong performance in November, prompting some strategists to recommend taking profits on long positions in 10-year Treasuries. Despite a decline in continuing applications for US jobless benefits, the labor market remains cool, with continuing claims near a two-year high. The MOVE Index, which tracks interest-rate volatility, suggests that rate markets remain choppy and could cause stress for equities.