From Marc Chandler at Bannockburn Global Forex:
Overview: Speculation that Japan will take measures to stem the rout in the government bond market has helped spur a short-covering bounce in the dollar after finished last week poorly and sold off yesterday. There has been a sharp drop in Japanese long-term bond yields, and although the dollar is higher against all the G10 currencies today, the yen is the weakest, off nearly 0.75%. Given the intraday momentum indicators and sentiment toward the dollar, we suspect North American participants will sell into the greenback's gains.
European benchmark 10-year yields are off 1-3 bp today. The 10-year US Treasury yield is four basis points lower near 4.47%. Equities are mostly higher today, but several large bourses in the Asia Pacific region did not participate, including China, South Korea, Taiwan, and India. Europe's Stoxx 600 fell in the last three sessions of last and is building on yesterday's gain today to recoup nearly everything it lost in second half of last week. US index futures are 1.3%-1.7%. Gold is trading heavier. It has returned to the pre-weekend low near $3290. July WTI is extended yesterday's gains. It held $60 at the end of last week and recovered to near $62 yesterday, which is where it is currently hovering near.USD: The 50% tariff on the EU that the US threatened on Friday was postponed until July 9 when the 90-day grace period from the reciprocal tariffs expire. Recall that before the weekend, the euro had recouped most what was lost on the US threat as the many thought it was negotiating ploy. PredictIt.com had around a 1-in-3 chance of them actually coming into effect....
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