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Treasury yields stay heavy so far on the day | Forexlive

  • 2-year Treasury yields down 3.3 bps to 3.946%
  • 5-year Treasury yields down 4.0 bps to 3.426%
  • 10-year Treasury yields down 3.4 bps to 3.405%
  • 30-year Treasury yields down 3.8 bps to 3.694%

Despite equities seeing a calmer mood, the bond market is still hinting at some safety bets after yesterday’s developments. This is continuing to weigh on USD/JPY, with the pair keeping at the lows around 135.70 at the moment. I outlined the technical situation for the pair here earlier.

Looking over to Fed pricing, we are seeing a further dovish shift in the rates curve with three rate cuts firmly priced in at the moment:

The drop-off after September towards the December is even steeper than what we saw earlier in the day here.