Dollar off the lows
Bonds are slumping and that’s given the dollar some new life.
US 10-year yields are up 4 bps to 1.31%. The high yesterday was 1.33%.
Similarly, long bonds are up 5.8 bps and about 2 bps from yesterday’s high. 30s have broken above a channel and are having a look at the Feb 2020 levels.
There is a push-and-pull ongoing with the dollar, the risk trade and stocks that’s struggling to find a solid base.
The market doesn’t seem to mind higher yields until we get +5 bps daily moves and then it starts to look a bit panicky.
With the latest pop in yields AUD/USD has given back most of its gains, falling to 0.7763 from a high of 0.7790 a short time ago.