If the last three weeks have been all about a flight to quality than I guess today can be characterized as a flight from quality. US T-bill yields are rising as investors take comfort in the Fed’s latest action, shoring up the commercial paper market. Yields are still ridiculously low, but at least they are double digits, as opposed to yesterday. At the moment, you can get a robust 0.45% on your money for one months, up 33.5 bp from yesterday’s close. Further out the curve, yields are up 8-9 bp.
EUR/USD has partially filled the gap from early Monday in Asia, trading as high as 1.3739 as risk aversion lessens. EUR/JPY trades at 140.50, up 5.5 euro cents from yesterday afternoon.
