Market Calm Persists Amid Easing Tensions and Lower Yields

The recent easing of tensions between the US and Iran has led to a less volatile market on Thursday. The drop in government bond yields also contributed to this calm atmosphere.

Meanwhile, Japan's 30-year JGB yields plummeted ahead of an auction, with the yen extending its gains. This comes as investors await the Bank of Japan's rate decision on September 18th, where there is a 97% chance of a 25-basis-point hike.

The US Treasury Secretary stated that he knows what the Japanese are planning to do, fueling speculation about potential intervention in the foreign exchange market. This uncertainty has led some to speculate that Japan may shift away from announcing its plans for intervention and instead focus on hitting speculators.