Yen pairs are beginning to go back to basics

USD/JPY D1 21-02

USD/JPY is now down to a low of 111.53 as the yen is the strongest performing major currency on the day amid the ongoing risk aversion in the market.

Notably, Treasury yields have fallen sharply across the curve with 10-yea yields down by 4.6 bps to 1.47% - nearing the lows seen during September last year.

USGG10YR

It is but a sharp reality check amid the recent divergence in bond yields and the yen, and it looks like the bond market looks set to come out on top yet again.