USD/JPY falls to fresh session low as the bond rally continues
The Fed will buy its last bonds this month (at least until QE4) but the market is absolutely rushing into bonds to start the quarter. Or maybe they’re rushing into bonds ahead of the ECB decision.
The ECB actually announcing QE tomorrow is an extremely low-probability event but there’s some chatter Draghi will seriously breach the subject. If you don’t believe in coincidences or flows around the quarter, it’s hard to blame anything but Draghi.
That said, bunds seemed to lead the first leg of the rally but Treasuries are in charge now with 10-year yields making fresh lows at 2.4070%.
In the flurry of bond buying, USD/JPY has fallen to a session low at 109.17 and is now threatening an outside reversal on the daily chart.
