As I ask around why dealers think bond yields are dipping so sharply today, all I get are verbal shrugs or vague explanations of “bargain hunting”…
It seems a strange day for the strong stock/weak bond correlation to break down, but breakdown it has.
The US 10-year note continues to fall in yield, down now below 2.75% from 2.82% earlier in the day.At the same time, oil holds most of its gains, up about $0.75 at 77.10 and the S&P is up nearly 1%.
USD/JPY is off session lows set earlier at 83.50, now at 83.62. EUR/USD is range-bound, finding demand on dips into the 1.2860s, a classic consolidation of the sessions earlier gains.
