10-year yields flirt with a push above 1% now
10-year Treasury yields are up by 5 bps to just above 1% currently as we start to get into European morning trade today. Traders are still reacting to the Georgia runoffs with a Democratic sweep looking likely and the bond market is responding accordingly.
So far, this hasn’t quite reverberated to the FX market as the dollar is keeping little changed for the most part. Instead, EUR/USD is now back up to just above 1.2300 and AUD/USD just pushed to its highest levels since April 2018 of 0.7785.
Elsewhere, S&P 500 futures are still down 0.4% while Nasdaq futures are down 1.1%.
I reckon we’ll have to wait on US trading later today to be sure of any confirmation reaction to how things are playing out in the market currently.