Another sign that the market is not ready for QE yet is the yield on 10-year Treasury notes. The June low of 1.5535% is holding so far.
In mid-June — the last time 10s were trading this low — USD/JPY was below 79.00. Trendline support in USD/JPY at 79.50 today is holding so far (79.59 spot). Bids from Japanese importers and life insurance companies are supporting 79.50 but stops loom below. A breakdown in 10-years could tip the balance.
