US 10-year note yields fell below 3% today and they seem to be getting comfortable down there. As highlighted yesterday, hedge funds that bought into the recovery story leading to a tighter Fed and higher yields are continue to dragged out and shot one by one.
I wonder what their first clue that they got this trade wrong?
Slumping US yields make the dollar that much less attractive to yield hungry Japanese investors, one more weight, along with wide-spread risk aversion, on USD/JPY.
