Five week lows for USD/JPY
It's all about the bond market today. US 10-year yields are down 6.4 basis points to 2.47%. That's important because the Fed funds rate is 2.25%-2.50% with the effective rate at 2.41%.
The two year and five year have already inverted and are down 4-6 basis points today.
Now markets are faced with a tough choice about whether to pay attention to US economic data, which has been solid. Or to a signal from the bond market that's one of the best market-based predictors of trouble (but certainly not infallible).
Technically, USD/JPY is down 62 pips to 110.21 in a break of the weekly low and mid-February low.
S&P 500 futures are down 12 points.
