The FX Files – Sell-off in Rates…

FICC Strategy Reports

Into the start: Core rates remain under pressure. US 10yr real yields are now at -12bps – an astonishing move from -47bps at the end of March. Meanwhile, 10-year nominal bund yields are now at 78bps after the results of the first round of the French election. Elsewhere, energy prices remain on the defensive. Despite this, JPY vols are spiking higher and we’ve been taking out of our USD/JPY trade.

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