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Global rates are nearing a breakout ahead of key central bank meetings, with equity financing costs surging and market breadth weakening. The Federal Reserve is expected to cut rates by 25 basis points today, aligning with market expectations. Tonight, the Bank of Japan is unlikely to raise rates but may signal hawkish intentions, as long-term Japanese yields show bullish patterns, indicating potential for higher rates. Tomorrow morning, the Bank of England is also expected to hold rates steady due to strong wage growth and persistently elevated inflation. Globally, liquidity constraints and rising credit spreads are pressuring markets, with deteriorating breadth and funding costs adding to the strain. These dynamics suggest that rates could climb higher, potentially impacting markets into the new year.

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