10-year Treasury yields are down nearly 3 bps to 3.934% on the day, keeping with the retreat from Friday. Overall, that is helping to feed into calmer tones in the equities space with European indices slightly higher while US futures are looking flattish. However, the dollar is trading more mixed as it is holding its own so far on the session. There is a bit of a break in correlation between USD/JPY and 10-year yields in the US now:
This comes as USD/JPY is pushing higher to be up 0.2% to 136.10 - at the highs for the day currently.
The dollar is also seen holding much firmer against the antipodeans, up 0.5% against the aussie and kiwi respectively. I want to say that owes more to a bounce in the dollar against the Chinese yuan, after having seen China disappoint with their GDP target for this year as seen earlier here.
As the dollar breaks from its correlation with the bond market, something's gotta give eventually and more often than not it is the case that the bond market is always right.
