10-year Treasury yields are up to a high of 1.646% on the day and that is further underpinning USD/JPY this week as the pair continues its rebound to 109.00.
Some light offers are seen in and around the figure level but the 50.0 retracement level of the April downswing @ 109.22 offers stronger resistance for the pair now.
The dollar being modestly bid across the board is also helping with the mood today.
There's no major headline catalyst for what we are seeing as this looks to be added positioning play ahead of the FOMC meeting later.
Bond traders look to be trying to push the reflation narrative but it will be interesting to see how they will respond if the Fed sticks to the same script as they did in March.
As a reminder, 10-year Treasury yields fell moved up to 1.75% in the run-up to the Fed meeting in March before retreating to 1.60% in the week after.