USD/JPY is in the middle of big reversal as Treasury yields rebound

Author: Adam Button | Category: News

Big move to the upside

It's month-end so easy explanations on currency moves are often fleeting. One spot I'm watching is the bond market today. US 5-year yields hit a record low of 0.2122% but they've rebounded to flat at 0.2311%. US 10-year yields are also battling some critical levels and now up 1 bps to 0.5560% from a low of 0.5186%. 30s are also 5 bps off the low.

That turn at the long end is likely feeding back into USD/JPY. It's also taking the shine off gold.

This is quite the reversal candle:
Big move to the upside
The other thing to think about is possible intervention from the Japanese MOF, something that was in play earlier today.

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