US-Japan 10-yr bond yield spread at 3-month high

The 10-year yield differential/spread between the US-Japan 10-year bond yield stands at 227.6 basis points; the highest level since July 7.

Yield spread chart

• Despite the uptick in the yield differential, the Dollar-Yen pair is struggling to break above 113.00 handle.
• The technical exhaustion in the USD/JPY pair could translate into a short-term sell-off if the yield spread starts losing altitude.