The yield on a 10-year Japanese bond rose as high as 0.092 per cent in early-morning trading, according to Tradeweb data, before the central bank's move pushed it back down to 0.08 per cent at the time of writing.
Euro, Hong Kong dollar, USA dollar, Japanese yen, British pound and Chinese 100-yuan banknotes are seen in a picture illustration shot January 21, 2016. That "steepening" of the yield curve continued on Monday, with yields on 30-year Treasuries more than 0.46 percentage points higher than their 2-year counterparts, the biggest gap in almost a month.
"We see the latest news on trade policy as pointing to continued high risk of escalation between the USA and China, and a renewed focus of the Trump Administration on currency matters", Goldman Sachs analysts said.
The yield curve's flattening, or the shrinking gap between short and long yields, has been seen as a possible sign of an coming recession.
Trump's new threats to slap duties on all US imports from China triggered sell-offs across stock markets, though good corporate earnings kept a lid on losses.
Investors are bracing for a packed earnings week, including Facebook Inc's (FB.O) results, and a meeting on tariffs between European Commission President Jean-Claude Juncker and Trump. "It could actually be good for autos", Psigma's McPherson said.
The Dow Jones Industrial Average .DJI fell 13.83 points, or 0.06 percent, to 25,044.29, the S&P 500 .SPX gained 5.15 points, or 0.18 percent, to 2,806.98 and the Nasdaq Composite .IXIC added 21.68 points, or 0.28 percent, to 7,841.87.
Liquor heiress charged with sex slavery
But US District Judge Nicholas Garaufis in Brooklyn balked at the idea of releasing her on a $25 million bond. Bronfman is a daughter of the late billionaire philanthropist and former Seagram chairman Edgar Bronfman Sr.
Online star April the giraffe is pregnant again
It's unclear if the newborn will be a female or male calf, but Patch estimates the pregnancy could take up to 19 months. She has lived at Animal Adventure Park since August 2015 and stands at approximately 15ft tall.
Donald Trump’s star on Hollywood Walk of Fame completely destroyed
Per CNN , the vandalism occurred in the early hours of Wednesday morning, according to L.A. police officer Ray Brown. President Trump's star on the Hollywood Walk of Fame has been damaged by a vandal with a pickaxe .
Goldman Sachs analysts said auto tariffs, if they came to pass, were likely to cause weakness in the Canadian dollar and Mexican peso, possibly also affecting the euro, pound, yen, and Korean won as investors priced in a hit to the economy.
The euro, which has been gaining from dollar weakness, climbed for a third straight day to a two-week top of $1.1750.
Exporter stocks slid on the currency's appreciation with Toyota Motor Corp 7203.T off 0.85 percent, TDK Corp 6762.T dropping 3 percent, Advantest Corp 6857.T down 3.5 percent and Panasonic Corp 6752.T shedding 1.1 percent.
USA crude fell slightly to $68.24 a barrel after posting its third straight weekly loss.
A series of recent media reports suggest that the gathering could deliver anything from allowing for a more natural rise in long-term interest rates to no change and a mere assurance that policymakers are considering the side effects. Copper CMCU3 - among the most sensitive to trade tensions - lost 0.32 percent, trading at $6,128.00 a tonne. Gold prices declined 0.2 percent to $1,229.1 an ounce.
The dollar index.DXY, a measure of the currency against a basket of six rivals, was up 0.22 percent.