The market seems calmer but the mood is delicate
The dollar and Treasury yields are creeping higher on the session
Equities are keeping the calm in European morning trade with central banks hinting that they are willing to do something to try and help with that to start the week.
The RBA doubled-down on QE today while the BOJ is offering a bit of a warning after having seen 10-year JGB yields hit a five-year high on Friday. Elsewhere, the ECB is perhaps playing some part in pushing European bonds higher (yields lower) today.
That said, 10-year Treasury yields are trading up to session highs now just above 1.43% and 30-year yields are up over 5 bps to near 2.21% currently.
Adding to that is the dollar rebounding off lows earlier to trade higher at the moment, with EUR/USD threatening key support from its 100-day moving average (red line) and trendline support in the region 1.2029-35.
Those are not really kind developments for risk trades despite the calm today, so don't take your eyes off the screens. If it gets messy, the mood is going to turn quick.