USD/JPY may have taken out 110 but we did not see broad based gains for the greenback today. The dollar traded higher versus the Japanese Yen, Swiss Franc and Canadian dollar but it lost value against the euro, sterling, Australian and New Zealand dollars. With no major U.S. economic reports released today, the gains in the greenback were driven by the continued rise in U.S. yields. However yields are also the reason why the dollar underperformed euro and pound. While 10 year Treasury rates increased 3.8bp today, UK gilt yields of the same period rose a whopping 9bp while German yields increased 6.4bp. In other words ... (full story)