It is still early days but just be mindful of the move we are seeing in bonds for now. US Treasury 10-year yields are now up by just 0.3 bps to 1.373% and in turn, we are seeing yen crosses being dragged lower as well.
Notably, European indices are also paring early gains but are still keeping afloat for now.
USD/JPY is at session lows of 110.57 as some caution is seeping in while gold is bouncing back higher after finding support from the 100-hour moving average earlier:
The market may be taking a breather after the risk slump yesterday to weigh up the current situation, but just be mindful that all it takes is one red flag to possibly trigger another bout of risk aversion in the sessions ahead.