Can’t keep USD/JPY down even with Treasury yields sinking

Treasury yields at the front end are still down 6 bps to 4.31% but they fell as low as 4.29% and have picked up recently. Some of the moves are caught up in the Israel-Lebanon headlines so it’s tough to get a clean read.

At the same time, this chart is telling. There are a series of higher lows on the chart and today’s dip down near 153.50 was bought twice, and bought particularly strongly this time. If this pair can get above 154.80, then it looks good for a return to 156.00.

The moves in bonds today can unwind as it’s not Scott Bessent that was elected to the White House. Every Treasury Secretary this century has been just a man/woman to enact the President’s policies. Yes, he can shift some things around issuance and talk the President down from the odd policy but Bessent is an implementer, not a policymaker.

This article was written by Adam Button at www.forexlive.com.