Just when you thought that the backing off from 5% might trigger a bit more of a retracement, it all but lasted a day – more or less. 10-year Treasury yields hit above 5% for the first time since 2007 on Monday before falling to near 4.80% subsequently. But now, we’re talking about a return towards the former again as yields are up another 2 bps today to 4.977% currently.
Keep in mind that after the 5-year auction yesterday, there will be a 7-year auction in Treasuries today as well. The event yesterday was not a major point for to extend the rout but it keeps with the ongoing waves of supply being pushed to the market.
And with Tokyo perhaps finally letting go of the 150.00 mark, USD/JPY might have a case of running much higher alongside the dollar now:
USD/JPY vs US Treasury 10-year yields (%) daily chart
