10-year yields are closing in on the 3% handle, lowest levels since 18 September
This is going to be where the action is at for markets today. 10-year yields are closing back in on the 3% psychological handle and it's reverberating nervous tones across markets as we begin the day. Equities are paring their earlier gains and the sentiment here is pushing the Japanese yen higher against the rest of the major currencies bloc.
Powell's speech overnight was interpreted to be more dovish by market participants but yields barely reacted then. However, given time to digest the "close to" neutral rate comments by Powell, it appears that markets aren't entirely convinced of multiple rate hikes to come by the Fed next year.
Look out for the 3% handle in the trading sessions to come. If that breaks, the floodgates will open towards further dollar weakness as well as yen bids.
