Stocks tumble sharply, while treasury yields dive as Trump announced to cancel the meeting with North Korean Leader Kim Jong Un in Singapore on June 12. At the time of writing, DOW is down -0.5%, at around 24770. Deeper fall could be seen but the key is whether near term support at around 24600 would hold. There is some distance to this level yet.
But 10 year yield is looking much worse. TNX opened the day at 3% and hit as long as 2.963 so far. There is some clear downside acceleration after Trump’s announcement through the White House. And the sharp fall in TNX drags USD/JPY to 109.10so far.
Below is the tweet from the White House regarding the cancellation.
A letter from the President to Chairman Kim Jong Un: "It is inappropriate, at this time, to have this long-planned meeting." pic.twitter.com/3dDIp55xu1
— The White House (@WhiteHouse) May 24, 2018