NewsDialy
The standard expectation after a rate increase is a stronger currency, rising bond yields, and downward pressure on stocks. Yield is the annual return an investor earns by holding a bond to maturity.
The Bank of Japan raised rates. The markets moved in the opposite direction on every count.
The yen fell past 157 against the dollar, the 10-year Japanese Government Bond yield slipped, and the Nikkei 225 stock index gained 1.5%. Here is what made each of those moves unusual.
When a central bank raises its benchmark rate, the floor price it charges when banks borrow from each other overnight, bond investors typically sell existing bonds because newer debt will offer higher returns.
Keep reading