USD/JPY runs higher as yields jump.More talk on the US unemployment rate | Forexlive

USD/JPY has extended today’s gain to 30 pips and 132.43.

USD/JPY initially opened lower but is now reacting to higher US Treasury yields. Friday was a mess of trading with most markets closed and bond trading thinned but ultimately SIFMA didn’t recommend a market close and yields rose, though it was hard to tell what the liquidity was like.

Skip ahead to today and the market is still holiday-thinned but US 2s are showing 12 bps above Thursday’s closing levels.

Here’s a rule of thumb that people are talking about after NFP: The idea is that once US unemployment rises 0.3 percentage points from the lows, a runaway climb is almost inevitable. It rose 0.2 pp in February but took back 0.1 pp on Friday.