Dollar, yen gains as long-end yields fall

10-year Treasury yields have fallen by over 2 bps to 1.596% on the day and that is seeing the yen gain further across the board but at the same time, major currencies are also seen slipping against the dollar and franc as well.
I’m not seeing any major hints of risk-off outside of FX but the action in the bond market is definitely interesting as long-end yields are falling at a much quicker pace than the short-end of the curve. 2-year Treasury yields are still up 1.5 bps at 0.499% now.
European equities are still keeping lower, down by about 0.3% to 0.5% while US futures have erased their light advance to be down 0.1% for the time being.
Going back to the long-end of the yield curve, 10-year yields are looking set for a fourth consecutive daily fall after clipping the 1.70% mark last week.
While breakevens are still elevated, real yields are still subdued and that underscores some real fears surrounding inflation and the economic outlook going into year-end.
For now, we’re seeing some of that weigh on FX with EUR/USD falling from 1.1605 to 1.1590 and USD/CAD rising to its highest in nearly two weeks above 1.2400:
FX
Elsewhere, AUD/USD has also pared its earlier advance from 0.7520 to 0.7490 and NZD/USD has fallen from 0.7155 to 0.7130 levels currently.
Meanwhile, USD/JPY has also slipped from 114.00 to 113.55 with large expiries seen nearby now alongside minor support closer to 113.41.