Guess who's not playing ball again today?

Author: Justin Low | Category: News

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.


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