Treasury yields are lower across the curve with 10-year yields back under 1.50%, slipping to its lowest levels since September last year as the market is leaning towards being more risk averse ahead of European trading today.

In turn, gold is breaking out in a strong way with price near the highs now around $1,628 with the currencies space also reflecting softer risk flows.

The aussie and kiwi are weighed lower with the franc among the better performers, despite narrower trading for the time being. USD/JPY is also seeing a bit of a pullback under 112.00 for now, so perhaps are we seeing a return to the norm for the yen?

Despite the negativity, Chinese stocks are continuing to rally as authorities prop up the equities market with more and more stimulus measures. The run just keeps going.

It’ll be interesting to see if Wall Street can turn things around later today, but with PMI readings in the European morning likely to reaffirm worries about global growth, I reckon we may be set for a more risk averse period before the weekend this time around.