The bond rout cools off a little, for now at least

<p>It's a volatile mess out there but the drop back down in yields in European morning trade so far is at least providing a light breather for broader markets. The dollar is seeing gains pared on the day with the euro and pound now sitting a little higher while S&amp;P 500 futures are now only down 0.1% after having fallen by roughly 0.6% earlier in the session.</p><p>Despite the price action we're seeing, I'd stay cautious as we tend to see the heavy selling in bonds hit in US trading. It has been quite a rather consistent theme since last month already.</p><p>And so, even if 10-year yields are back down to 4.81% currently, we might just end the day closer to 5.00% and that wouldn't really surprise me. This is really the only space you need to watch in markets right now.</p>

This article was written by Justin Low at www.forexlive.com.