(Bloomberg) — Bonds rose as traders prepared for the Federal Reserve to reduce interest rates, expectations that also triggered a surge in the yen.
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Stock markets kicked off a crucial week with muted moves, as Europe’s benchmark Stoxx 600 index edged lower, while US equity futures were steady. Investors were also assessing the implications of a second attempt to assassinate former President Donald Trump.
Expectations of a narrowing interest rate differential between the US and Japan propelled the yen to its highest level since July 2023, while the dollar slipped. Treasuries extended their gains, with the yield on the policy-sensitive two-year note falling to the lowest since September 2022.
The start of a long-anticipated US easing cycle takes center stage this week, part of a 36-hour monetary roller coaster that includes policy decisions in Brazil, South…
