Three-and-a-half week high in 10 year yields
A three year auction is coming up at the top of the hour but that shouldn't have too much effect on the long end where yields continue to climb after forming a double bottom at 1.12% last week.
The rise above 1.32% today helps to confirm that double bottom and indicate that the bond market is less concerned about delta and more focused on the taper.
The read-through here is obviously bullish for the dollar but I limit that to USD/JPY and USD/CHF (maybe EUR/USD too) but the bigger read through is for a positive growth view and recovery from covid.
The measured target on the double bottom is 1.60%, which would be a nice level to consolidate around as the inflation picture sorts itself out.
