US 10-year yields are down to a session low of 1.88%, retracing some of the move higher since yesterday. Notably, yields are down by ~3 bps in the past hour alone. It is a similar story for European bond yields as well.

It could be hints of profit taking ahead of the weekend as investors square up their bond positions so I reckon this is just something to take note of for now.

Equities are still keeping cheerful and that is helping to leave USD/JPY underpinned at 109.61. Let’s see if there is anything more to the move here in the next couple of hours and if it will spill over to other asset classes.