USD/JPY’s corrective bounce to 109.00 could be short-lived as the yield differential continues to slide in favor of the Japanese yen.
The spread between the 10-year US treasury yields and its Japanese counterpart fell to 268 basis points (bps) soon before press time – the lowest level since Apr. 2, 2018.
Moreover, the spread may continue to drop further, courtesy of dovish Fed expectations and extended risk aversion in the equities.
Yield spread
Share
