US yields have backed up dramatically in the last two sessions, up another 5 bp on the short-end of the coupon curve this morning. The rising yileds are closing the gap between the higher yielding German market and the market for US government debt. That narrower gap has prompted profit-taking among EUR/USD longs.
US 2-year noted are yielding 0.79% this morning from 0.505% shortly after the Japanese earthquake. USD/JPY is getting a boost from the huge spike (in percentage-terms). Offers remain on rallies to the 81.80/82.00 level.
