You’d think if global equities were to go on an early August tear that they’d at least be kind enough to take USD/JPY and US bond yields along for the ride…
No such luck today. In the case of USD/JPY, some deleveraging from Japanese margin accounts could be contributing to the lack of upside as well as renewed reports of China adding to its holdings of Japanese Government bonds.
In the case of US Treasuries, the lack of movement is somewhat more perplexing. I guess when the Fed chairman reminds you with his every utterance that the economy faces stiff headwinds ahead there is very little reason to dump your bonds for fears that inflation is about to gobble up your returns.
USD/JPY is steady in the 86.40 and US 10-year notes are stuck around 2.95% today.
