Bank of Japan Governor Haruhiko Kuroda offered an upbeat view of the economy but sought to douse market talk the central bank may soon consider raising interest rates, vowing instead to keep policy loose to achieve the BoJ's 2 % inflation goal.
Risk appetite remains strong at the start of the new week, aided by a softening in tone of some of the more controversial campaign promises as Donald Trump, the candidate, continues to morph into President-elect Donald Trump.
The Treasury 30-year yield is slightly higher to 2.87% after trading to a 3 month low of 2.84 yesterday. The chart below shows support toward these levels as old high yield levels of 2.84% and 2.85% were reached in March and December ’14 respectively.
The Treasury curve reacts strongly to the employment data, widening the yield spread between 5 and 30 years above a trend line dating to mid-January. This yield spread trades to 122 basis points from a low of 105 bps at mid-month.