As expected, Japanese rates remained unchanged. But contrary to what most observers thought, the BoJ maintained a very flexible stance, contenting itself with cosmetic adjustments in its phrasing. The yen consequently lost ground.

London energy shares underperformed yesterday as oil prices decreased, while tech shares were top gainers. The FTSE 100 rose 0.5% on Monday and was up 0.3% this morning,  boosted by gains by gains in the aerospace and defence sector after Barclays upgraded the rating of Rolls-Royce to overweight from equal-weight.

Meanwhile, BP plc fell 4.5% after it posted results for the third quarter that missed expectations, hampered by lower energy prices. The company extended its $1.5 billion share buyback programme.

Investors are now focusing on the Fed meeting tomorrow and the Treasury’s detailed decision on its bond-selling plans. Yesterday, it already announced it expects to borrow $776 billion in the fourth quarter, which is $76 billion less than it had anticipated in July.

Things to read today:

Nobody puts bonds in a corner (Financial Times)

The Treasury Had Good News for Yields. But Don’t Relax Just Yet (Barron's)