Trade war escalations continue to be ignored by the markets in general. Dollar and Yen are staying as the weakest ones today. In particular, Yen is pressured additionally by a sharp rally in US Treasury yields overnight. BoJ’s announcement to stand pat on monetary policy triggered little reactions to the Japanese currency too.
On the other hand, Australian Dollar is leading New Zealand and Canadian Dollar higher. Euro firmed up slightly against Dollar and Yen but lacks conviction.
US Treasury yield staged a strong rally overnight, in particular at the long end. 5-year yield closed up 0.034 at 2.936. The 10-year yield rose 0.047 at 3.048. The 30-year yield rose 0.057 to 3.195.
The development is certainly welcomed by Fed policymakers who are worried about the flattening yield curve. The development also put extra selling pressure on the Japanese Yen.
On the other hand, Australian Dollar is leading New Zealand and Canadian Dollar higher. Euro firmed up slightly against Dollar and Yen but lacks conviction.
US Treasury yield staged a strong rally overnight, in particular at the long end. 5-year yield closed up 0.034 at 2.936. The 10-year yield rose 0.047 at 3.048. The 30-year yield rose 0.057 to 3.195.
The development is certainly welcomed by Fed policymakers who are worried about the flattening yield curve. The development also put extra selling pressure on the Japanese Yen.