Here’s an overview of current bond yields:

• German 10-year bond yields fell 5.5 bps to 2.373%
• French 10-year bond yields fell 5.3 bps to 2.935%
• 10-year UK gilt yields fell 8.5 bps to 4.194%
• 10-year Treasury yields fell 3.2 bps to 3.807%

Today’s drag comes largely on the back of softer Eurozone and UK PMIs earlier. As high inflation continues to persist in the main economies, further economic decline makes the situation more difficult for central banks. Recession risks are on the rise and this does not give much confidence in the outlook in the coming months.

Worryingly, as major central banks continue to tighten, they may risk screwing things up. Remember this argument here?

As for today, the Japanese yen is among the beneficiaries of higher bond yields. USD/JPY was earlier hovering around the 141.30-40 levels, but has now fallen to fresh lows for the day – down 0.5% to 141.10. The price fell short of testing the 142.00 boundary and the 61.8 Fib retracement level at the end of last week, but key support is still closer to 140.00 at this point: