US 10-year yields touches above 2.50% on the day

First time since the tax reform bill was confirmed in December 2017

It's still early into the year, but it looks the bond market is sending us a signal as we see 10-year yields surge above 2.50% today.

If yields are able to pull above the 2017 high of 2.63%, it should bode well for the US dollar as the sentiment that higher yields are here to stay in the US will attract more flows from foreign investors.

As long as longer-term yields are moving up, that will keep USD/JPY underpinned. The pair is now at 112.92, retracing most of its losses following the BOJ announcement earlier in the day to "taper" its bond purchases.