10-year Treasury yields up 1.6 bps to 1.475%, the highest since 30 June
There was a light reprieve early on for bond buyers to start the day but sellers are back in control now as yields push higher to its highest in almost three months.
In turn, that is putting upwards pressure on yen pairs with USD/JPY trading up to a session high of 110.94, recovering from the tail-end of Asia Pacific trading around 110.54.
As mentioned last week, a pure technical run in 10-year yields could extend towards 1.60% or perhaps even 1.70% at this juncture, more so that there is backing from the Fed outlining its taper timeline last week.
The US jobs report on 8 October will be a key risk event to watch in validating Fed expectations so until we get there, yields are likely to remain buoyed in the meantime.
