Tune in again tomorrow for the 30-year auction
This has turned into a pretty big move in the US dollar and it keyed off the strong demand in the 10-year sale.
US 10-year yields had reached as high as 1.1855% before the sale but have fallen back to 1.130%, down 1.5 bps on the day.
Tomorrow there is a 30-year auction so we'll find out if there is more real money waiting in the weeds.
In any case, the pause in the bond dump has led to a sizeable turn in the US dollar. USD/JPY is down 40 pips from a few hours ago at 103.80. There have been similar-sized moves across the board.
I don't think you can draw any conclusions from today's price action aside from: Keep a very close eye on bonds.
