While dollar bears can’t get enough of the QE story, it looks as though the bond market has taken the QE message on board and is looking for new catalysts. US yields continue to back up this morning despite yesterday’s clear signal from the FOMC that QE is right around the corner. 10-year notes are up to 2.46% yield, up about 10 bp from this time yesterday. 2-year notes are almost 4 bp higher, which doesn’t sound like much, but it is a huge move considering we’re at a 0.37% yield.
EUR/USD has succumb to some profit-taking, sliding back to the 1.3935 level on selling from a US name. Middle Eastern accounts were rumored sellers earlier toward 1.4000.
