10-year yields in the US are holding at 4.55%, its highest in 16 years, and that is continuing to reverberate across broader markets. The dollar remains underpinned as such with USD/JPY now testing waters just above 149.00, while equities are falling with S&P 500 futures now marked down by over 0.5% on the day:
S&P 500 futures
In turn, the aussie and kiwi are also at the lows for the day with AUD/USD down 0.3% to 0.6404 and NZD/USD also down 0.3% to 0.5950 currently.
It’s not looking pretty for risk trades ahead of the open in Europe and that means it is good news for the dollar at least.