Japanese Yen Explodes Higher; Global Bond Rout Underway

It started in Japan last night. There has been a major shift in investor behavior away from bonds the past two days, which, interestingly, has gone unnoticed in the gold sector. Typically, the two sectors trade in tandem, in a perverse risk on/risk of world.

JGBs plunges last night, with yields dropping 8bps to -0.05%. Over in Germany, bunds are getting hammered, down 5 bps. And, naturally, this is crossing over into other European bond markets, as well as ours.

Typical of a risk off environment, the Yen is exploding higher, now up 1.5%.

U.S. markets are taking it all in stride, barely down 100 points at the moment.