Things are looking calmer once again in European morning trade but when we get to US trading, that's when things start to really heat up. The selling in bonds especially has been coming about once Wall Street steps into the fray so far this week:
And that might once again be the case today. The dollar has largely benefited from this with EUR/USD falling to hit 1.0500 for the first time since January. Meanwhile, USD/JPY is still teasing a push towards 150.00 despite intervention fears although the move has been a slowly and gradual one at that.
In other markets, gold is also succumbing to the pressure of higher yields as it falls to $1,875 - its lowest levels since March.
Equities are also under pressure and despite the late recovery in tech stocks yesterday, it doesn't exempt from the souring technical picture here.
For now, 10-year yields in the US are sitting near 4.60% and not rising further as we get into European trading. But if the bond rout continues later in the US and yields jump up further, that will continue to have ramifications for FX and risk trades for this week.
