10-year yields in the US are down 4.9 bps on the day to 4.939% now, after having come close to brush up against the key 5% mark. As geopolitical tensions are still persisting, that is perhaps offering some counter flows but I reckon bond traders might also be looking to take some off amid fears of a potential retracement move.
US Treasury 10-year yields (%) daily chart
USD/JPY is still looking perky at 149.87 currently as buyers continue to poke and prod near the 150.00 mark. But as mentioned yesterday, in lieu of higher yields this week the pair really should be trading higher if not for fears of Tokyo intervention.
Right now, it’s all about reading the bond market but the ongoing geopolitical tensions involving the Israel-Hamas conflict is making it quite tough to balance out the flows. And even more so as we approach the weekend, where markets might think about seeking shelter once again.