Stocks lower. Yields lower. USD mixed.

The US yields are trading at session lows with the 10-year yield now down -6.8 basis points. The 2 year is down -3.8 basis points.

The fall in yields is being impacted by lower stocks (flight to safety) as Univ of Michigan consumer sentiment fell while inflation expectations moved higher. That is not a good combination.

Geopolitical risks are also higher leading to flight to safety flows.

Looking at the stocks, the snapshot at 1 PM shows:

• Dow Industrial average down -597 points or -1.35% at 43578.12.
• S&P index down -70.70 points or rise 1.16% at 6046.30.
• NASDAQ index down -299 points or -1.50% at 19663.
• Russell 2000 down -50.22 points or -2.22% at 2211.52.

In the FX market, the US dollar is mixed but mostly higher. Greenback is lower versus the JPY and near unchanged vs the CHF. The greenback is higher versus the EUR, GBP, CAD, AUD and NZD.

The USD changes vs the major currencies shows:

• EUR +0.35%
• JPY -0.35%
• GBP +0.23%
• CHF -0.04%
• CAD +0.32%
• AUD +0.47%
• NZD +0.30%

This article was written by Greg Michalowski at www.forexlive.com.