That's arguably one of the more ominous signs for dollar sentiment, even if the greenback is somewhat holding steadier since trading yesterday. 10-year yields are back up by over 4 bps to 3.46% but remains below its 100-day moving average (red line), seen at 3.49% (or 3.47% on some charts).
Keep below that and there is scope for yields to fall further, and that won't bode well for the greenback as such. For now though, the slight bounce in yields is helping with USD/JPY up 0.3% to 137.00 as price contests the 200-hour moving average at 136.98 currently.
Besides US jobless claims today, there isn't much in terms of data for traders to work with. As such, just be wary of the developments above. What could the bond market be signaling? It's a tough one but Adam offered some food for thought here.
