10-year Treasury yields now down to 1.605% from 1.633% earlier
Once again, the bond market appears to be less convinced about any major risk-on shift as we see some bids on the session - pushing yields lower as a result.
10-year Treasury yields are now up by just 0.5 bps to 1.605%, down from a high of 1.633% earlier when we saw the stronger risk-on tilt in the European morning.
As such, that has brought USD/JPY down to 109.95 from highs of 110.13 posted earlier in the session with yen pairs easing slightly but are still sitting higher on the day.
I wouldn't look too much into this just yet but if we start to see bonds pick up more bids later in the day, we could start seeing a bit more push and pull in the risk mood once again.
It'll be a case of bonds stepping with caution as equities continue to chase all-time highs, with major currencies caught somewhere in between.
The movement in stocks and yields have been closely correlated for quite a while since July last year but since the turn of the new year, the divergence has been evident:
