USD/JPY pops to a session high after another dud 7-year auction

No one wants seven-year notes

No one wants seven-year notes

A month ago a terrible 7-year auction sent bond prices reeling. Lately though, the market has reeled in some of the concerns and yields have stabilized.

Just when it looked safe, another 7-year sale rolled around and once again there was much weaker demand than anticipated with a 2.5 bps tail.

The results sent USD/JPY a few pips higher to 109.23, which is the highest of the day.

So far though, it’s not setting of the kind of freak-out we saw a month ago but Treasury yields are higher and bear close watching.

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