Yen and Dollar are trading as the two strongest ones today, and for the week, as supported by strength in treasure yields. 10 year JGB yield opened higher at 0.088 today and stays firm at 0.085 at the time of writing. It was bounded between 0.023 and 0.049 in July up until this Monday. Judging from the current momentum, 10 year JGB yield is having 1% in sight. Note that Yen is having little reaction to the China led Asian markets rally. It will continue to “listen” more to JGB yield than stocks/risk sentiments.
Meanwhile, US 10 year yield gained 0.70 overnight to close at 2.965. The strong rise, as led by 30 year yield’s jump since last Friday, should set the stage for 3.000 handle and above. For now, we’d not seeing any decisiveness for a break of 3.115 high yet. But it’s something that’s worth monitoring. While Dollar seemed to be talked down by Trump’s comment last week, surging yield would bring it back to life.