Big day for bonds

The soaring demand for safety gave a jolt to bonds today and that has sent yields sharply lower. US 10-year yields are down 10 basis points on the day to 1.2225%. That's the lowest since mid-April.

Technically, the drop re-emphasizes the double top that formed in December/March.

Many trades have retraced the post-election moves but bond yields have a long way to fall to do the same. If this is the start of an extended drop, it signals a corresponding plunge in USD/JPY.

The good news would be in the stocks where lower yields would put the borrow-and-buyback playbook back in vogue.