Bond Rout Pushes Japan Yields to Key Threshold as Oil Nears $88

Global government bonds sold off further in the September 1 session, with Japanese yields breaking through a level traders have flagged as a key threshold for months. The move came alongside rising bets that the Federal Reserve could still raise rates, and a rally in crude oil that pushed WTI up toward $88 a barrel, a level chartists describe as double-top resistance. The combination has left European stocks largely directionless. Indexes were described as muted even as individual names like Reckitt moved sharply, a sign that the bond and oil moves are dictating sector rotation more than broad index direction. Silver, meanwhile, has been trapped between $67 and $68.50 for several sessions, with traders watching for a breakout in either direction. London Gas Oil has pushed into extreme overbought territory, with its RSI reading 77. What remains unresolved is whether the yield move in Japan reflects a durable shift in Bank of Japan policy expectations or a temporary technical break. Until oil, yields and the dollar settle into a clearer trend, equity markets are likely to keep reacting to individual stock news rather than a single macro narrative.