US Treasury 10-year yields (%) daily chart

The bond king's latest call earlier this month isn't going so well thus far. 10-year Treasury yields are down some 26 bps in May as of today, with eyes on more big moves when we get to key US data later. The CPI report will be the one to watch but there's also retail sales and the NY Fed manufacturing index released at the same time.

As we look to that, bond buyers are continuing to stay firm as they have been since the turn of the month. 10-year yields are down at 4.42% now, nearing a drop to its lowest in roughly five weeks.

From a technical standpoint, we're moving towards drawing in the 200-day moving average (blue line) at ~4.33% currently. That will be one to watch in considering any further resolve of bond buyers, should the data today favour their conviction.

As yields hang lower today, that is also pulling USD/JPY down in European trading. The pair is down 0.5% to 155.70 currently, with the dollar lagging across the board as well.

Risk trades aren't racing higher just yet but other markets appear to be positioning for a similar reaction to the PPI data yesterday, at least for now.