Bonds start to signal further caution in the European morning
Now this is more like it. The bond market is finally getting the message and yields have quickly turned lower across the curve as a result. 10-year yields are now at flat levels, down to session lows for the day as markets grow more cautious.
This is pushing USD/JPY to a session low of 106.14 with European equities also pushing a bit lower as we begin early morning trade.
Equities continue to be more defensive with US futures down by 0.7% still currently. Given the lack of optimistic developments between US and China, expect the sluggish risk tone to prevail ahead of North American trading.
