The belly of the curve has been leading the latest push in fixed income, with 5-10-year yields up 1-9 bps. The US 10-year yields now at a new cycle high at 2.72%.
The broad move higher in yields is helping to underpin a bid in the US dollar ahead of the weekend. USD/JPY is now up 55 pips to 124.48 in the sixth day of gains. The big question is whether it can break through the 125.00 top set last month.
The latest leg of dollar strength has spread to commodity currencies as well, with USD/CAD crossing above 1.26 and AUD/USD falling through 0.7450.
