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Yen jump, oil and data spark a mild rise in Treasury selling pressure

U.S. 10-year yields were near 4.7%, while MBS prices slipped just over an eighth as new data added to the selling tone.

Reported · Written up by our desk · Central Banks

Japan’s currency moves and related central bank actions are being linked to a small uptick in selling pressure across U.S. Treasuries, with the yen seeing a renewed overnight spike as U.S. Treasury weakness also began.

Mortgage News Daily notes that the timing lines up particularly well with higher oil prices tied to Iran headlines, suggesting energy price moves were another driver alongside the yen-specific moves.

The outlet also points to fresh economic data, saying this morning’s ECI release added a small but measurable amount of selling.

As a result, 10-year Treasury yields were hovering around 4.7% and mortgage backed securities were down just over an eighth, described as mild weakness given the set of inputs.

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