Dollar gains some ground as 10-year Treasury yields break above 1.71%
The bond market is sending a message back to the Fed so far today, that is if the central bank demands more from the long-end, so be it.
10-year yields are now up over 7 bps to 1.71% - its highest since January last year - while 30-year yields are just inches away from touching 2.50%.
Even though the dollar was weaker in the aftermath of yesterday's FOMC decision, it is tough to ignore sentiment from the bond market when the pace of the moves are as such.
The greenback is now catching a bid across the board as USD/JPY erases the BOJ report drop in a jump from 108.80 to 109.15. Meanwhile, EUR/USD has fallen from 1.1980 levels earlier to 1.1960 while AUD/USD has trimmed gains from 0.7840 levels to 0.7815.
