Treasury yields continue to push higher on the session
10-year yields are now up by more than 4 bps to nearly 1.60% with US futures also trading at the highs up by around 0.6%. European stocks are also holding more solid on the session with gains around 1% across major indices in the region.
In the currencies space, we're still seeing the yen holding weaker with USD/JPY sitting at 106.53 and the mood in equities and bonds will keep things this way ahead of North American trading as such.
The aussie is also sitting a little higher now, benefiting from some cross flows against the kiwi but at the same time, the loonie is also pushing back below 1.3300 against the dollar amid higher oil prices.
I don't believe we're seeing markets building into any major budding optimism but perhaps if Fed minutes are supportive later on, we could see a bit of a risk-on rally ahead of more central bank rhetoric to follow in Jackson Hole.
In my view, we're still seeing much back and forth action in terms of positioning and flows this week before it culminates in a firm directional move once we get remarks from the Fed - even if they don't signal much clarity this weekend.
