US 10-year yields touched above 4% for the first time since the aftermath of the December 13 FOMC decision.
US 10s
The rise in yields comes just after the equity open and erases all the move over the holiday period.
The dollar is getting a particular boost against the yen, with that pair now up 133 points to 143.32. That pair -- not coincidentally -- is back to December 13 levels.
USDJPY daily
I wouldn't overthink any of this. Markets do stupid things in the final two weeks of the year and there are heavy flows as the new year begins. It will all settle out and then fundamentals will take over.
On that front, fed fund futures are now pricing in 145 bps in cuts this year, which is a bit more realistic than then 160 bps priced in a week ago.
