The bond buyers were waiting

<p>The US dollar is slumping hard following today's non-farm payrolls report. The headline was a touch soft and revisions were negative so there's a reason to sell the dollar. At the same time, the wage numbers were hot and that will give the Fed some indigestion as they try to bring inflation under control.</p><p>On net, I'd say that's something of a tie, so why the big USD drop?</p><p>I think there were would-be bond buyers lurking. The +4% yields in 10s are attractive but many would have been reluctant to buy in case of a big non-farm payrolls surprise to the upside. So while there were some bond-negative details in the report, there was nothing strong enough to spook those who are reaching for yields that are more attractive than they've been in 15 years.</p><p>Yields are now near the lows of the day right across the curve, with 10s down to 4.15% from a high of 4.20%.</p><p>EUR/USD is up a half-cent:</p>

This article was written by Adam Button at www.forexlive.com.