How quickly the tables have turned. Just a little over an hour ago, bond yields looked to be hinting at a calmer mood ahead of the European market open. And suddenly, here we are now..
2-year Treasury yields were up to around 3.955% but have fallen by 5 bps since then to 3.905% with 10-year Treasury yields also slipping back to just under 3.40%, marked down to the lows for the day.
This comes as European indices are also extending losses, down by roughly 1% across the board mostly. It is a reminder that there is some caution still being heeded amid the more defensive risk moves from yesterday.
In FX, the dollar is still slightly lower with decent losses against the euro and pound. But that could switch up later in the session if we do see a similar trend to the one yesterday. USD/JPY is also down to the lows for the day at around 133.43, lower by 0.2% currently.
