Possible scenario
BOJ Reassures Markets
20% Chance
Officials judge that the speed of the yield move risks tightening financial conditions faster than intended. The BOJ uses speeches, market operations, or bond-buying guidance to separate policy normalization from disorderly market functioning.
Initial impacts
- Riskier companies' borrowing costs Down
- Market volatility Down
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Finance -0.5%
- Industrials +0.5%
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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