Guess who's not playing ball again today?
The bond market is not as convinced by the better risk tilt so far today
US 10-year yields are down to session lows currently, lower by 1.4 bps to 1.547%, as the bond market doesn't appear to be quite as convinced by the risk recovery today.
European stocks are still trading higher with US futures up by 0.2% on the day, but yields are sitting lower in European mid-morning and this will be one to watch for yen and gold traders in the session ahead.
So far, the yen is largely ignoring the lower yields with USD/JPY still holding at one-month highs near 110.25. But gold is playing things by the book at least:
Gold is now near session highs close to $1,610, up by 0.5% on the day.
The recent divergence in equities and bonds is certainly one to take note of to start the year as there could be a painful correction down the road for one side of the market or the other. The only question will be when.