The selloff in both Treasuries and equities have been a key story this week
Despite US equities having fallen by nearly 20% on the week, Treasury yields have actually climbed higher with the curve even steepening over the past few days.
10-year yields hit a record low of 0.31% on Monday and has now climbed higher by over 56 bps to 0.87%. This is despite the epic meltdown in the market over the past two days especially, with risk parity falling sharply as a result:
So far today, yields are moving in tandem with how US futures are performing - higher by over 3% now - so that will at least be comforting news to investors that at least the market is "functioning" as it should be.
But it is still early in the day and the moves here may prove to be nothing more than a head fake or a dead cat bounce as we look towards the weekend and next week.
For now, this is keeping yen crosses bid on the day with USD/JPY now at 105.80 looking to try and breach the 106.00 level.
