10-year Treasury yields are now up over 5 bps to 4.28% and that is pinning equities lower, with S&P 500 futures now down 22 points, or 0.6%, on the day. Nasdaq futures are suffering the most, down 0.9% as tech sentiment suffers from higher yields. European indices are also seen struggling with the DAX down 1.6%, CAC 40 down 1.7%, and UK FTSE down 0.8% at the moment.
In turn, this is translating into fresh bids for the dollar as it moves to session highs against most major currencies. USD/JPY is one as it pushes to 150.78, its highest levels in 32 years as noted here. Meanwhile, EUR/USD has also moved down from 0.9800 earlier to 0.9770 again.
As for more risk-sensitive currencies, we are seeing AUD/USD fall to near 0.6250 as sellers lean on the key hourly moving averages earlier to stay in near-term control:
Meanwhile, GBP/USD is also slumping as it is down 0.7% to 1.1145 as price falls to a fresh one-week low amid a firmer dollar and a lack of confidence in the UK outlook for the pound:
After the early optimism in the opening two days of this week, it looks like broader market sentiment is starting to get a bit nervous ahead of the key central bank meetings coming up in the next two weeks.
