10-year notes yield a scant 1.81% today, weighed down by ongoing European concerns as well as by the Fed’s accommodation stance which was amplified at last week’s FOMC meeting.
USD/JPY has been straight down since the FOMC announced that US rates would stay low for the next two years and another round of asset purchases appears very likely in the next several months.
USD/JPY bottomed last fall as US yields made record lows, so yields bear watching from here.
