10-year note yields nearly reached 3.40% this morning after edging just past the 61.8% retracement of the decline from 4.01% to 2.33%. The retracement is located at the 3.37% level. We now trade at 3.35%.
As bond yileds pull back this morning, the dollar tends to give back gains. Look no further than USD/JPY which faltered near 84.40 again and now trades at 83.97.
EUR/USD has rallied to the 1.3280 level.
