Between CPI, Bullard and rumours of an emergency Fed rate hike, the front end of the US curve was absolutely mangled today.
There's been no let-up and we're at the highs of the day in yield, up a whopping 26.5 basis points to 1.613%. The chart has gone parabolic:
More over with 10s only up 12 basis points the spread is down to 44 basis points.
With the Bank of Japan pinning rates, all it will take is a bit of calm in markets to get USD/JPY moving to the upside. Though I'm not sure we're going to see that this week.