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Greg Gibbs, Founder, Analyst, & PM at Amplifying Global FX Capital Pty Ltd, an Australian financial services company, explained that  US yields shot higher Wednesday after 10-year yields rose above previous highs for the year.  

Key Quotes:

“While rising US yields haven’t helped the USD all that much in the last year or two, the USD experienced a broad-based rise in line with the rise in US yields today.  The rise in yields is too sharp, and risks surrounding other currencies (Italy-EUR, Brexit-GDP, tariffs/oil – Asia FX) too large to ignore.  Recent Fed comments suggest they will raise rates for some time, Amazon wage hikes gel with a tightening labor market, and US ISM reports are very strong.  Breakevens and term premium estimates have hardly moved this year and point to upside risk for US yields.”