The bid in bonds is continuing to flow and that is seeing 10-year German bund yields fall to its lowest since 31 May. It is down by roughly 19 bps on the day to 1.03% in a second day of big inflows into the bond market.

Elsewhere, 10-year Treasury yields are also down by over 11 bps now to 2.794% – the lowest in over two weeks. The drop in yields today is lighting a bid in the yen now with USD/JPY falling to the lows for the day near 137.00 after having held around 137.50-60 levels at the start of European morning trade.

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