In the pre-QE world, the bond market was the best signal for everything. It was the first market to move and the signals were clear and lasting but the Fed manipulating bond prices changes the game.
Today, stocks are falling again but bond yields have ticked higher. The bond market is the best reflection of USD/JPY at the moment but you have to wonder about the effect of this week’s probable tapering announcement and if that’s delaying some trading or forcing traders into some other kind of safe haven asset.
US 10 year yields
In other news, stocks just fell to a fresh low with the S&P 500 down 8 points and the Nasdaq down 1%.
