Yields are sharply higher in the US and Germany this morning but they are surprisingly quiet in Spain and Italy.

Spanish 10s are trading a few beeps above 5% while the spread over Germany has narrowed to 350 bp, the lowest since February of last year. Italian 10s are at 4.28%.

US yields continue their surge, up to 1.96%, a clear topside breakout on the yield charts. Firmer yields are a clear benefit for USD/JPY; less so for EUR/USD, given how closely German and US bond markets track one another.

Support for EUR/USD comes in between 1.2985 (50% of the 1.2661/1.3308 rally) and 1.3000. More stops are eyed below that level.