US yields are at their highs of the day at 2.084%, quite close to top of the trading range that has restrained yields since November of last year.
German bunds are are up 5.7% bp to 1.815% and UK gilts are 8 bp firmer at 2.174%.
Not sure why the market is suddenly getting inflation jitters since emerging markets are showing sluggishness and the developed world isn’t exactly booming. Yes, inflation remains stubbornly high, but not sure what the new info the market has taken on board today.
Firmer yields in the US and Europe should keep the JPY on the defensive.
