US 10-year notes are sharply higher in yield late in the session, yielding 3.72%. They’ve been even choppier than the dollar of late, trading in about a 30 bp range. With most aspects of the reflation trade working well today (commodities and equities, in particular), yields have been pushed higher on the off chance that the global economy may actually recover one day.

The dollar remains a bit of an enigma today. There have been a few large dollar-buying flows during the session which are followed by moderate sell offs. The buck looks like it is going to end the US session pretty close to where we went out last evening.

USD/JPY is getting support from the higher yields, helping solidify the theme that Japanese investors remain eager cinsumers of risk. The buck trades close to 97.00 after quietly pushing through the 200-day moving average at 96.85. 97.23 is chart resistance.

EUR/JPY is getting a lift from yen weakness, putting stops at 137.50 and 138.00/05 at risk in very thin trade.