The surge in US yields helped lift the dollar but did not block the equity rally. The 10-year Treasury yield surged 12 bp yesterday and the 10-year break-even widened amid ideas that the Omicron variant will boost price pressures. Japanese and Australian markets re-opened and led the regional equity advance with nearly 2% gains. Taiwan and Singapore also posted strong advances. The PBOC withdrew liquidity from the banking system, and this seemed to weigh on Chinese and HK activity. The US 10-year yield steadied near 1.63%, while Australian bonds played catch-up, with yields rising nearly seven basis points to 1.74%. ... (full story)