10-year Treasury yields are down by 2 bps to 0.835%
The bond market is continuing to hint at more caution as yields are slipping further following the euphoria from the Pfizer and Moderna vaccine optimism in the past week.
The former saw 10-year Treasury yields jump up by nearly 15 bps last week but we are seeing most of that faded already, with the jump from the latter earlier this Monday not really having the same effect as we see yields fall further on the session.
With tighter restrictions being implemented in the US and Europe, not to mention with no stimulus aid in sight, there is still some degree of uncertainty in the market in the short-term; despite there being light at the end of the pandemic tunnel.
In turn, this is dragging USD/JPY lower with the pair now testing 104.00 to start European morning trade.
