Apperently an effort by Janet Yellen to burnish her inflation bona fides ( I’m as willing to take away the puch-bowl as anyone, she said) helped set off a big slid in US bond prices and a rise in yields.
2-year notes ended at 0.98% last night and trade at 1.07% this morning, an astounding move for the short-end of the curve. 10s yield 3.77%, up from 3.69%.
USD/JPY is benefiting most directly from the higher yields, though the dollar is bid across the board. The thinking is the Fed won’t hike soon, but it will hike before the other major central banks…
USD/JPY stalled at 91.96 and trades now at 91.85. Support is at 91.50/55 on pullbacks.
