US 30-year yields are down 12.2 basis points on the day to 2.87% after reaching a three-year high of 3.03% earlier.
The catalyst for the latest move was an extremely strong bid at the 20-year auction. The 'when issued' market was looking for 3.125% but the sale went through at 3.095%.
I'm a bit skeptical of the follow-through here because 20s were the cheapest spot on the curve so this might reflect that more than broader demand for bonds.
In any case, the drop in yields has spread right across the curve and 30s are carving out and outside day.
That kind of price action could stamp out 3% as an interim high and underscores it as a resistance point. There's a similar (albeit less-dramatic) outside reversal in 10s while 2s remain close to the cycle high in yield.
The price action is negative for the US dollar and USD/JPY in particular. That pair is down 116 pips after a bug move higher yesterday.
