The fundamentals and seasonals may be aligning for bond bulls.
Today's softer US CPI and retail sales numbers led to a big rally in bonds with 10-year yields down 8.4 bps to 4.35%. That's well below the 4.73% peak at the end of April.
US 10s
Bond buyers will be glad to know that the seasonals for yields peak in May, or May 13 precisely. That's a modest signal in something like fixed income but if you look at the above chart, the trendline from the February low is also cracking.
The turn lower in yields should also be a drag on USD/JPY, though yield spreads are still wide.
