US 10-year yield rises 18.6 bps to 2.04%
At some point, rising bond yields will begin to spook the stock market. That, in turn, may put a bid back into bonds.
The WI on the auction note was trading at 2.004% and it sold at 2.020%. The bid-to-cover was a dismal 2.220 compared to 2.530 at the last election.
The bond market, like almost every other market, is dealing with some confusion here. In any case, USD/JPY likes those more-appetizing yields and the pair is now up 56 pips to 105.73. That's more than 550 pips from the lows.
Incredible.