Long End Sell-Off Continues

Long-dated Tsy yields continued to shoot to fresh highs overnight, with the short-end / belly fading most post-FOMC gains as well.

• A trigger for the sell-off across the curve was a Nikkei report pointing to the potential for the Bank of Japan to widen the 10-Year JGB yield target band at tomorrow's BoJ decision (to -/+0.25% from -/+0.20% at present), although arguably the language in the article itself is a little less forceful than the headlines.
• Nevertheless, yields across the Tsy curve pushed up sharply, accelerating when European desks came in, led by 10s: 2-Yr yield is up 1.4bps at 0.1471%, 5-Yr is up 4.9bps at 0.8473%, 10-Yr is up 8bps at 1.7224%, and 30-Yr is up 6.8bps at 2.4862%.
• Jun 10-Yr futures (TY) down 24.5/32 at 131-10.5 (L: 131-05.5 / H: 132-03) on very heavy volumes, ~900+k traded so far.
• Equities have reversed course lower, and the USD higher.
• 0830ET brings the bulk of the day's data: jobless claims data and Philadelphia Fed biz outlook.
• We get $80B of 4-/8-week bill auctions at 1130ET, with $13B 10Y TIPS auction at 1300ET. NY Fed buys ~$1.750B of 20Y-30Y Tsys.