10-year Treasury yields are up 3 bps to 4.02% and that threatens a break of the 4% mark, which has held the topside so far this week. But gradually, that has fueled dollar gains and we are seeing that again today with USD/JPY now rising to 145.30 – its highest in over three weeks.
The dollar is now slightly higher across the board as a result while risk trades are feeling a bit of a pinch once more. S&P 500 futures are now down 0.1%, losing about 10 points since an hour ago, while gold is also down a touch to $2,041 from around $2,045 at the end of Asia trading.
It’s a familiar part of the script since the turn of the year and it begs the question: Are markets waking up to the idea that the euphoria has gone too far?