Following the previously noted ongoing rise in yields around the globe on the back of this week's unexpected and coordinated central bank hawkish jawboning which sent 10Y Bunds as high as 0.43%, double where they were earlier in the week...
... the fixed income sell-off continued in early NY orders with US yields leading the squeeze higher amid burst in volume which saw some 150k contracts push the 10Y yield higher. According to Citi, "there's little to stop the move, with nothing overnight discouraging this trend - we haven't seen any obvious headlines to trigger the latest move."
As such the whole US treasury curve is higher, with 10y yields testing 2.29% and 5y yields reaching for 1.88%. With US yields showing signs of stabilizing and potentially turning higher from here driven by the belly of the curve, Citi adds that we may see a resumption of the bear steepening move.
Consequently USDJPY continues to squeeze higher amid some modest dollar strength, and we are now trading around 112.70 just ahead of the trend line resistance at 112.75.