No surprises that the yen is the top gainer on the day as safe haven assets stay bid
But oh boy, is the yen ahead of the rest of the major bloc. The dollar index is up by 0.5% on the day but yet USD/JPY is down by more than 0.7% at the moment. That says a lot about how much the yen has gained against the rest of the other currencies.
At the lows, USD/JPY touched 108.43 earlier as Treasuries are catching a large bid on the day with Italian assets facing an exodus. 10-year yields have fallen by more than 10 bps at the moment, and earlier fell to a low of 2.80% - a drop of 12 bps.
Meanwhile, we're seeing gold also gain on the back of all of this - up by 0.45% against the dollar trading at $1,303.90 currently.
It's getting really ugly in Italy - I know I've said it since yesterday but really - and with major declines all around in European stocks it's not really helping the mood. Italian bonds continue to just get routed, and we're seeing the Italy-Germany 10-year yields spread exceed 300 bps now. That's more than 70 bps higher than where it was yesterday.
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