The ebb and flow matches
US 10-year yields are back in the mid-January range after a breakdown last week.
The fortunes of yields are tied at the hip at the moment to US stimulus. There has been a nice bounce in the past week with Democrats putting reconciliation firmly on the table but also Biden meeting with a group of Republicans who proposed a bi-partisan bill.
Getting it done is clearly a priority and quickly. There's a broadly better tone in markets as well, but that also ties back to stimulus.
Technically though, it looks like we're on our way to a re-test of the 1.20% level. This rise is helping to keep the bid in the US dollar.
It's politics though so it could all change in a heartbeat.
