This is fueling a fresh round of bids in the dollar to start European trading as we see a more risk averse mood take over markets. Equities are coming under pressure as such and USD/JPY is starting to run up against resistance and offers at 135.00 now.
The push higher in bond yields is reflective of a change in sentiment in broader markets, as traders are now fearing that the Fed may be more aggressive when it comes to tightening policy in the months ahead.
