US bond yields are at or near the highest since October as the US prepares to sell $21-billion in a 10-year note re-opening.
The ‘when issued’ market is expecting a 2.07% yield but the risk is that it’s higher on jitters ahead of the FOMC decision. A yield around 2.09% will cause a round of selling that causes a technical breakdown in 10-year yields, something that will spill over to USD/JPY (resulting in buying).
