US yields have dipped along the yield curve in the wake of the very successful 2-year Treasury note auction. From 3.56% yield yesterday morning and above 3.50% this morning, we now trade at a 3.46% yield in the benchmark 10-year note.
USD/JPY has been under pressure since the auction results were announced just under two hours ago. From just above the 92.00 level at 1 pm New York time, we’re now at 91.73. USD/JPY has stalled in the 92.20/30 area several times so far this week and bulls appear to be getting a little tired. Risk aversion has played a role as well, with sales of AUD/JPY, GBP/JPY and EUR/JPY noted today from leveraged and real money players.
91.50 and 91.20 are supports on pullbacks near-term.