Market Moves Despite Light Newsflow as Bonds Continue Slump

The market moved despite light newsflow in North America on September 18, 2026. The focus remained on bonds after the FOMC decision, with yields pushing close to 19-year highs. The front end stepped up again, with 2s reaching 4.75%, the highest since 2024.

The pressure on the short end helped lift USD/JPY but it ran into trouble at a high of 158.05. This coincided with a Japanese rate check, according to a Nikkei report, following the BOJ's earlier hike. The BOJ had voted 7-2 in favor of the hike, suggesting it may be done sooner rather than later.

The reaction from markets was mixed, with gold finding buyers despite rising yields in a breakdown of the usual correlation. Bitcoin and ethereum also saw significant gains, up 6% and 7%, respectively. The price action could indicate underlying demand waiting for the Clarity Act dust to settle.