2-year German bond yields are up nearly 15 bps to 2.525% on the day while 2-year Treasury yields are up over 14 bps to 3.923% at the moment. We are seeing yields move to the highs for the day and that is underpinning the bounce in USD/JPY as the pair now races to a fresh high of 131.50 in European morning trade.
There's not much of a catalyst as it just looks to be the fact that the market unease over the banking turmoil continues to abate.
Equities are also faring better after a bit of a hiccup earlier here, with S&P 500 futures now back up by 18 points, or 0.45%, on the day.
After having been relatively convinced that the Fed might not hike rates any further, it seems like market players are having second thoughts about their own second thoughts now. Fed fund futures now indicate a roughly 62% odds of the Fed staying put at the May meeting, down from 85% earlier in the day.
