50% of the post-election rise evaporates
US 10-year yields are at the lows of the day, down 2.5 bps to 0.845%. It's been a steady drift lower since the test of 1.0% in the aftermath of the US election and the Pfizer vaccine news.
Despite more good news on the vaccine front, there has been a steady bid in bonds to push yields lower. We're now into the 50-61.8% retracement zone of the post-election range.
The drop in yields is mirrored in USD/JPY, which has been drifting lower for the six sessions and has already cleared those Fibonnaci levels.
There is some talk gathering steam of the Federal Reserve doing more to cushion the US economy against the risk that Congress stays sidelined.
