30-year yields at the highest since May
Yields climb higher.
The long end is leading a sell off in bonds today, pushing up yields 1-2 bps across the curve.
It's part of a larger trend that's been ongoing since the start of the month. Since finding support just ahead of 2.95%, 30s have tracked up to 3.21%.
That's a tailwind for USD/JPY generally but it's not playing out that way in the short term as the tariff ebb and flow dominates. So far today, the market hasn't been able to embrace a larger theme but keep an eye on bonds. So far the moves are modest but another couple basis points could give the dollar a lift. Also watch emerging market currencies. They're higher so far but a push in Treasury yields ripples through.
