US 10-year yields hit 2.75%
USD/JPY slipped into the London fix and slid down to 109.23 from a high of 109.75 but has bounced back to 109.55.
Part of the reason is a continued climb in Treasury yields, along with the rise in stocks. Looking closer at bonds, the 10-year yield crossed above 2.75% for the first time since 2014.
The real question is what happens when 10-year yields hit 10%.
The thing is: We've been there before. At the time, USD/JPY was around 120.00 and the US dollar was stronger across the board.
The difference was that global growth was in a rut and only US yields were higher. Now, global yields are all creeping higher.
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