That is the highest in 16 years as the rout in bonds continue to gather pace on the week. Traders were already on edge earlier this week but the Fed vindicated the selling momentum and has seen yields shoot higher as a result.
With the BOJ not walking the talk today, the yen is facing a buy the rumour, sell the fact moment now. And that could mean some catching up to do for USD/JPY, with the pair now up 0.4% to 148.17 on the day. That being said, there is the thought of intervention fears to be mindful of with price closing in on the 150 mark.
As the focus and spotlight stays on the bond market, just be mindful that we will be getting a host of PMI data later today. In the case of Europe, softer prints there could lend itself to a slight drop in regional bond yields as we look towards the end of the week.
But as higher yields continue to reverberate across broader markets, it bodes ill for risk assets and equities in particular. And we already got another taste of that yesterday with US stocks falling hard.
