US 10-year yields are down 7 bps to 4.16% today. That’s the lowest so far this year and within striking distance of the December intraday low of 4.126%.

Beyond that, 4.00% and the September low of 3.60%. That low came on big concerns about a slowing US economy and with the Fed rapidly cutting rates (or seen as behind the curve). Given the inflationary worries and declining data, we could quickly find ourselves in the same situation.

USD/JPY tracks yields and there is a double bottom near 148.50 with spot about 100 pips above that. In September the pair fell to 140.00 as yields bottomed.