Late afternoon jitters on Wall Street are helping increase risk aversion again and risk aversion is helping cut US bond yields. USD/JPY has fallen back to the 119.15 level from earlier highs near 91.67 while EUR/JPY has slumped to 109.30 from 110.60 highs.
US two-year notes are down to 0.73% in yield from 0.77% when optimism was higher earlier in the day. 10s are at 3.175% from 3.24 earlier.
In EUR/USD, traders note heavy selling by US real money accounts from the 1.2010 area down to 1.1985. Note that there is often a lag between the underlying stock or bond trade being done and the FX component flowing to the custodians. It looks as though US managers continued to pull money out of Europe today, selling into strength.
