The S&P 500 pulled back into the sessions close yesterday, keeping a bid in US rates markets. While the S&P is still holding above its previous 2012 highs formed in April, the persistent downtrend in US yields is more concerning as 10yr yields approach resistance near 1.62/63%. This is likely catalyzing further JPY strength; our focus is on EUR/JPY and the base of a two month channel which is holding firm for the time being.
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Barclays Capital