US 10-year yields is up almost 2 bps to 2.57%
Yesterday, the bond market took out the 2.50% for US 10-year yields in European trading and then later on in the US session it closed in on 2.55%.
We're about to head into European trading and it's already touching 2.57% now. The breakout is surely under way at this point, and the next level to look at will be the 2017 high at the 2.627% level.
This comes as Japanese yields continue to climb as well following the BOJ's "taper" announcement yesterday. JGB 10-year yields are sitting at 0.89% today.
As I mentioned earlier here, the bond market is sending a different signal from the FX market as stronger US 10-year yields in general is a good supportive factor for a higher USD/JPY. But this time around, Japanese yields are also gaining - which adds an entirely different factor into the equation.
As I write this, USD/JPY falls further on the day and touches below 112.00 briefly (low of 111.99). Now the pair is at 112.05.
