Bond yields continue to climb
One of the more talked about themes for the year is that we're going to see weakness in bonds after a stellar year in 2019. Part of that talk is due to some green shoots observed in the global economy and that major central banks will stay more sidelined.
We'll see how all of that plays out in the end but so far bonds have failed to build further on their momentum from the first eight months of last year. Global yields have more or less bottomed out in early September and have been on the rise since then.
German 10-year bond yields are now up to their highest since June and if the bond market is going to stay more tepid and weak throughout, this will be one that yen traders have to be wary about as a major theme underpinning yen pairs this year.
