The bond rally last week continues to fade as yields are continuing to rise further this week. With Treasury yields higher across the curve and risk sentiment more optimistic today, bunds are no exception and we’re seeing 10-year yields come back up to the 0% level again.

Across the board, risk assets are continuing to perform well with European equities posting gains near 1% in major indices while 10-year Treasury yields are up by 4.5 bps now to 2.52%. Meanwhile, US equity futures are also trading at the highs up by around 0.6%.

That is leading to further softness in the likes of the dollar and yen on the day as markets continue to focus on risk sentiment in trading so far.