Markets may be moving in reaction to headlines but national news channels (in the UK at least) are not even covering it in any depth.

It’s potentially big news if it is really kicking off and not just an isolated incident and markets are taking back some of the losses as I type.

USD/JPY lost a quick 40 pips to 102.28 and EUR/CHF fell below 1.2100 to 1.2095.

Bonds have seen some action as US 10 year yields went over the cliff they were sitting on yesterday 2.31% was the low and we’ve recovered to 2.34% European bonds are seeing some inflows as yields tumble. German bunds are trading at 0.75% now -4bp. That;’s going some way to keeping the euro afloat.