How quickly the tables turned. Just over an hour ago, bond yields seemed to point to a calmer mood before the European market opened. And suddenly here we are…
The 2-year Treasury yield rose to around 3.955% but fell 5 basis points since then to 3.905% with the 10-year yield slipping below 3.40%, reaching lows for the day.
This comes as European indices also extended losses, down nearly 1% across the board. It is a reminder that there is still some caution to be heeded amidst the more defensive risk moves from yesterday.
In FX, the dollar is still slightly lower with decent losses against the euro and the pound sterling. But that might change later in the session if we see a similar trend to the one that happened yesterday. USD/JPY also fell to lows for the day at around 133.43, currently down 0.2%.