Yields continue to fall after breaking below 2.80%
It's a level that has held up on three separate occasions since February but yesterday's break gives incentive for Treasuries to rally further (send yields lower) on the day.
The reverse in sentiment in equities - tech stocks in particular - from yesterday's trading is continuing today as Asian and now European stocks are all in decline. Eurostoxx is down 1.32%, UK's FTSE is down 0.96%, Germany's DAX is down 1.40%, and France's CAC 40 is down 1.30%.
In light of all of this, the currency market appears to be rather immune still as the dollar is dueling it out with the British pound as the lead gainer on the day, while risk off currencies such as the yen and the swissie are among the laggards.
It's tough to make out what the market is really signalling right now as there are option expiries at play as well as month/quarter-end flows to deal with. It makes for choppy trading, and the latter tends to produce movements out of nowhere - though it does make for good two-way trading to be honest.
Define your risk, and pick your levels appropriately. Otherwise, come back when the dust has settled because it clearly hasn't at the moment.
