Treasury yields crushed, prompting............>

FOREX: Treasury yields crushed, prompting widespread FX vol spikes

- Price action reminiscent of capitulation rocked markets early Friday, with

circuit breakers tripping on multiple occasions in US bond markets -

underpinning another sharp rise in FX vols, with havens once again preferred.

10yr treasury yields retreated further below 1.0%, hitting 0.6932% at the low

today.

- The sharply lower sovereign curve has sapped the greenback of any strength

today, helping pressure USD/JPY through 105 for the first time since August last

year. Y104.46 becomes the downside target.

- Equities are bearing the brunt of the risk-off, with broad-based selling

pressure across all sectors. The EuroStoxx Bank Index is a particular area of

weakness, and has hit the lowest levels since 2009.

- Nonfarm payrolls today are unlikely to show much of virus impact just yet and,

as such, may be disregarded later today. The slew of Fed speakers are more

likely to garner market interest, with Evans, Bullard, Williams, Rosengren and

George all due ahead of the blackout period kicking in later today.