10-year yields drop back below 2.40%
Just when it looked safe for the bond bears, they were forced back into hibernation by Mike Flynn.
10-year yields fell as low as 2.31% but have bounced back to 2.35%. That's still far below the 2.41% level pre-Flynn news.
The drop down in Treasury yields mirrors the dip in USD/JPY.
At the moment, you can see the indecision. The lows came early but the bounce has been narrow. I think the trade is to buy it on a rise above 3.265%. Similarly, it would be to buy USD/JPY on a break above 112.12.
I suspect we would already be there if not for the looming weekend. There is a fear and expectation the Trump-Russia story will develop further on the weekend.
