10-year yields in the US clipped the 4.30% mark yesterday but are pushing back lower by nearly 6 bps to 4.249% currently. The former is a key line in the sand for the bond market at the moment and so far, the bulls are making a bit of a stand. But against the narrative that have driven yields up by 30 bps in since last week alone, are they able to meaningfully turn the tide? That remains to be seen.
But if bond bears were ever looking to reconsider their position, there would be no better place.
I’d keep a close watch here as a break higher is still going to cause plenty of angst and pain across broader markets. But at least for now, there can be some sigh of relief.
The dollar has come off the boil as such, especially more so in USD/JPY which is down another 0.3% today to 145.40 at the moment.