Traders appear cautious amid fears of the Bank of Japan’s exit from its multi-year low ultra-easy monetary policy once Haruhikobid adieu in April. On the same line are the dovish expectations from the Reserve Bank of Australia , mainly after downbeat comments from RBA Governor Philip Low.
On the other hand, BoJ announced one more unplanned bond market move and teased readiness for a hawkish stunt after April. That said, Reuters’ poll mentioned, "The Bank of Japan will end its long-term yield control policy this year." The February 28 to March 6 survey of 26 respondents also anticipated that academic Kazuo Ueda's new leadership will dismantle the complex easing scheme and restore bond market functionality.
Amid these plays, Wall Street closed mixed and the US Treasury bond yields remained firmer with minor moves and keeping the yield curve inversion the widest since 1981.