Markets fell on Friday.
The S&P 500 dipped 0.1 percent, the STOXX Europe 600 fell 0.8 percent and the Nikkei 225 tumbled 1.4 percent.
A tentative decline in the US 10-year Treasury yield was halted by an announcement by the Federal Reserve that it would allow a rule change announced on 1 April 2020 to expire on March 31. That change had allowed banks to exclude Treasuries and deposits with Fed banks from the calculation of the leverage ratio.
“This is a disappointment to investors that the Fed decided not to extend it,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office.
“Wall Street is closely going to follow the upcoming Treasury auctions and if bank interest is low, the bond market selloff could intensify,” said Edward Moya, senior market analyst at Onada.
Earlier on Friday, the Bank of Japan announced that it was widening the band at which it allows long-term interest rates to move around its target, as part of a raft of measures to make its ultra-easy policy more sustainable amid a prolonged battle to fire up inflation.
Meanwhile, Europe's battle with COVID-19 continues as the continent faces a third wave of infections.
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