US 10-year yields back away from 5%, threatening the US dollar

<p>All eyes are on bonds today as US 10-year yields back away from 5%.</p><p>They reached 4.995% early in US trading but couldn't break through and have been strongly bid since, driving yields to 4.91%.</p><p>The drop in yields runs right across the curve and could reflect a bid for safety ahead of a potential Gaza invasion, short covering or investors seeking higher safe yields than they've had in 15 years.</p><p>In any case, the drop in yields is dollar negative and positive for equities, though the reaction in those markets so far has been tepid.</p>

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