A one way street in USD and a one way street in yields
I was writing this just as USDJPY hit 113.00 but it's still pertinent to the overall picture
US debt is being hovered up by the safe haven mob. There's comments today that Yellen's testimony yesterday pointed to the possibility of a delay in the next hike (that's a delay to the market expectations of a hike, even though the Fed have given no such set in stone timetable).
With the stock market out of QE ideas there's usually only one place the money then runs into and that's bonds.
US 10's traded down to 1.54% today and sit at 1.58%, -9bp so far. The rest of the curve isn't fairing much better.
It's a big reason why USD is also under pressure as US bonds is another big safe house for flows from around the globe.
US 10 year yields
Bonds, stocks, FX, central banks, you need 10 eyes to watch it all :-D
