Watch the tick-by-tick moves in markets this week, it's clear that everything is taking cues from bonds.
There was some corporate issuance yesterday and that might have hurt Treasuries and started the push higher in yields. Today, some of that is reversing and the early USD strength is unraveling. The move has accelerated in the past few minutes.
Equities have found a moderate bid, trimming the S&P 500 decline to 19 points from double that. Oil has also rebounded to $120 in a flash, demonstrating that there are no sellers in crude.
In terms of price action, the rally in GBP is an interesting one. It cratered earlier in an unwind of yesterday's relative strength but it's now back to unchanged on the day and above some short-term resistance. The market is sensing that Boris Johnson will go all-out to try and stimulate some growth via tax cuts to save his job.
