10-year yields are up by 4.4 bps to 1.538% currently as yields are higher across the curve. Notably, 30-year yields are back above the 2.00% threshold once again currently.

This is a continuation of the move seen yesterday and it’s tough to chalk this up purely to month-end flows. There is no doubt that markets are starting to feel more hopeful and optimistic about the US-China trade rhetoric.

However, the recent remarks aren’t anything overly dramatic in my view and that poses a risk that markets may be caught on the wrong side of the fence when reality sinks in.

As mentioned earlier, month-end rebalancing flows will make trading today a bit more tricky so if you’re not able to make sense of the moves, it’s best to wait it out until next week for more clarity about the situation.

The resilience in Treasury yields here is helping to push USD/JPY a little higher towards 106.50 currently, moving off lows of 108.30 earlier in the session.