Treasury yields shoot to multi-year highs
The front end of the Treasury curve, which is most sensitive to interest rate rises, is getting blown up today. Part of the story is risk appetite but the market is also sending a sign that Fed hikes are still on the table.
Two year yields are up 7 basis points to 0.7900%. That's the highest since 2011.
Further out the curve, 10s and 30s are only trading at one-month highs but they're up about 9 basis points each.
Traders are reaching to find catalysts. Some of it is stoked by the idea that China isn't buying bonds any longer but that's nothing new. This is a pretty serious signal about Fed worries.
In FX, it's great news for the dollar, especially USD/JPY and it climbs to a fresh session high at 120.48. The 200-dma is at 120.82 as key resistance but ahead of that is the Asian high of 120.65.
