Bond yields fall while European equities are seeing red
Some hints of risk aversion is creeping in as bond yields fall, seeing US 10-year yields lower by 1.4 bps to 1.832%, while European stocks are also skidding a little currently.
The DAX is down by nearly 0.6% as US futures are also being dragged lower to start the session. Meanwhile, gold is trimming losses (down by ~0.3% now) but seeing the price action in bonds above, perhaps gold has some room to gain a little more still.
Meanwhile, USD/JPY has erased all of its earlier gains and is trading at session lows around 109.90 currently. I would argue that this is the market signaling caution over extended gains ahead of the US-China trade deal signing.
As mentioned earlier, with US stocks hitting all-time highs and what not, it really presents a compelling case for risk trades to take a breather after the risk event tomorrow.
