Here we go again... Risk aversion starts to creep in
US futures fall into negative territory and bond yields decline as well
E-minis are down by 0.1% currently, erasing earlier gains while Treasury yields are falling lower across the curve as well. 10-year yields are down by 2.5 bps to 1.62% currently.
Of note, 2s-10s continues to tighten with the spread sitting at ~5.5 bps at the moment and moving closer to being inverted.
In turn, USD/JPY is lower by about 10 pips to 105.29 now but be wary of a further shift that will impact risk currencies more later on in the session.