Equities are softer as bonds stay bid, helping to underpin the yen
Until we hear of fresh developments from US-China trade talks in Washington, expect market participants to err on the side of caution in trading today. Asian equities are marked lower in trading so far, while S&P 500 futures are also down by 0.5% as we move towards the European morning session ahead.
US 10-year yields are down by 1.6 bps to 2.467% and that is helping to weigh on yen pairs, with USD/JPY hovering just under the 110.00 handle for the time being.
Just about everything else will take a backseat now as markets continue to eye US-China trade talks before deciding on any key moves to wrap up the week. If we don't hear of any fresh developments by the end of tomorrow, watch out for headline risks over the weekend that could cause gaps at the open next week - much like five days ago.
