US 10-year yields are up to 3% again after briefly hitting the key level yesterday while German 10-year yields have touched 1% for the first time since June 2015. There is no let up in the bond market rout as the trend continues to play out ahead of the Fed tomorrow.
That will be the next key risk event to see if the mood will be tempered with or if the washout will continue to stay the course in the weeks ahead.
As for FX, the key implication will be for yen pairs especially now with USD/JPY holding above 130.00. The next key big figure to watch will be a push towards 135.00 if the bond selling does not let up post-FOMC.
