Mike Dolan

So US Treasury bonds, which normally riff off the interest rate outlook,

they're getting a safety bid.

They're considered a safety asset.

And that's offset by the rising oil price implication for inflation, which, of course, is very politically sensitive for President Trump in this election year.

Even though these stories have circulated for over six months now, and the ECB says that no decision has been made, inevitably we'll focus the markets on who comes next at the ECB.

And it's all changed the top two central banks this year, if that were to be the case.

Who comes next?

Possibly a German candidate for the first time.

possibly another compromise candidate.

How it affects monetary policy is very much in the frame.

So markets relatively calm about the story, but it begins a process that they will focus on for months ahead.

God bless America!

Yeah, huge jump in Japanese stocks.

But the areas of the market that were most worried about this election in the last weeks and months were the yen and the long-dated Japanese government bonds.

And they're relatively stable.

Basic calculation is that we know Takeichi's plan now.

We have a long period of political stability ahead.

We also expect the Bank of Japan to push ahead with interest rate rises.

And so the short-dated Japanese government bond yields have jumped indeed.

But the yen is holding steady, and that's where everyone's watching.