USD/JPY climbs after poor US Treasury auction | Forexlive

USD/JPY has gotten a lift after the US Treasury had to pay more to borrow at today’s 10-year auction.

The notes sold at 4.140% compared to 4.106% in the moments before the auction in the WI market. Since the sale, on the run 10s have continued higher to 4.163% and that’s helped to lift USD/JPY to 146.39.

BMO described the sale as “very soft” and noted a weak indirect bid. Tomorrow is the October CPI report and the weak demand for bonds could reflect apprehension about the numbers.

Rising yields are also what sent stocks to the lows of the day. The S&P 500 is down 1.2%.