The belly of the curve led the latest push in fixed income, with 5-10-year yields up 1-9 basis points. US 10-year yields are now at a new cycle high at 2.72%.
The general rise in yields is helping to support a bid on the US Dollar heading into the weekend. USD/JPY is now up 55 pips at 124.48 on the sixth day of gains. The big question is whether it can clear the high of 125.00 last month.
The latest leg of dollar strength also spread to commodity currencies, with USD/CAD rising above 1.26 and AUD/USD falling to 0.7450.