The march higher in Treasury yields finally spills into FX
The story in markets today is bonds. US 10-year yields are now up 5 bps to 2.92% and the curve has steepened.
It took awhile but the US dollar is finally getting some love. It's steadily climbing higher across the board, with the yen as the only real exemption.
EUR/USD is now at the lowest levels of the day, down 28 pips to 1.2346 and nearing yesterday's intraday low.
I fear the rise in Treasury yields is inevitably going to cause some jitters in risk trades so a yen cross might eventually be the way to play it.
