10-year yields gain 4 bps in US afternoon trade
Today's 2-year auction was a touch on the strong side but markets have generally flattened out late in New York. The exception is bonds as 10-year yields rose to 2.34% from 2.30% in the final hours of trading. Combined with the climb to start the week, that's 10 bps higher since Friday.
Until this latest move, the bond market had been raising an eyebrow at the moves in stocks and USD/JPY. The latest swing looks like a nod from bonds that today's moves could have some legs and that the breakdown in 10s might have been a false breakout.
