Possible scenario
BOJ Normalization Proceeds
18% Chance
The Bank of Japan interprets the strong auction as evidence that private demand can absorb more duration. That gives policymakers room to keep reducing JGB purchases and preserve the option of another rate increase.
Initial impacts
- 10-year Treasury yield Up
- Market volatility Up
- US dollar Down
Secondary impacts
- Utilities -0.6%
- Finance +0.4%
- Technology -0.3%
- Consumer Cyclicals
Portfolio impact
S&P 500-0.2%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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