Massive moves across markets

USD/JPY H1 06-08

The offshore yuan has fallen to lows of 7.06 currently from a high of 7.14 earlier in the day and the sentiment here is that the PBOC is not wanting to weaken its currency by all too much despite allowing for a higher move yesterday.

That has seen a significant turnaround in markets this morning and we're seeing an extension of that across the board. The dollar is holding more steady with EUR/USD falling back under 1.1200 with the yen notably sinking amid a recovery in risk assets.

Of note, US 10-year yields are now up by 5.2 bps to 1.76% at session highs while US equity futures have pared declines of up to 1.9% earlier to be in positive territory.