Dow Jones| Nasdaq | S&P 500 | US Stock Market Today |Highlights: US stocks slip as higher Treasury yields weigh on sentiment

Monetary policy has been the prime focus this week, as the war in the Middle East nears the seven-month mark with few signs of ending, which is keeping oil prices above $100 per barrel and fanning inflation fears. That has also led to a rise in yields across major government bond markets.

The yen weakened and Japanese government bonds fell after the Bank of Japan raised rates to a 31-year high of 1.25%. The decision, though expected, excited yen bears with two board members dissenting to the hike.

The Federal Reserve raised rates for the first time in three years on Wednesday and switched to a more aggressive stance on inflation, which knocked the yen, putting it on course for its worst weekly performance against the dollar in two years, down 2.6%.

The Bank of England on Thursday left UK rates unchanged but said it may have to hike if the Iran war drags on. The European Central Bank last week also flagged the need for further tightening as it raised rates. And Australia’s top central banker on Friday said some of the upside risks to inflation flagged by policymakers appeared to be materialising.