Treasury yields something to keep an eye out for ahead of the weekend
The market has pretty much ignored this space for the last three months but it is worth keeping an eye on things todayThe yen is gaining modest strength amid the risk-off mood in markets but also as Treasury yields are starting to push the lower bound of its trading range since April.
10-year yields are down another 2 bps to 0.574% and that is nearing the key region around 0.54% to 0.56% that has held over the last three months or so.
In turn, this is helping to move USD/JPY closer to its own lower bound of 106.00.
While Treasuries have not been a good indication of market moves lately, it is still worth watching in case the bond market starts to wake up from its deep slumber.