It appears that the backing up of US yields is giving the dollar a better tone and challenging the Eurosystem, which has stepped up its bond purchases. The US 10-year yield is around 1.65%, roughly a two-week high and back above the 20-day moving average. European yields are mostly 2-4 bp higher, but benchmark UK yield is up six basis points about 0.84%, which, if sustained, would be the highest close this month. For its part, the greenback is firm against all the majors, but to be sure, the gains are modest. After falling each day last week against the yen, it is posting gains for the third consecutive session. The ... (full story)