<p>What a mess in markets today.</p><p>Normally, falling yields would be good news for risk trades and bad news for the dollar but we're seeing the opposite today. Instead, it's a classic flight-to-safety.</p><p>It's an odd dynamic because you can't lock it into a non-farm payrolls outcome. </p><p>1) If you expect a weak jobs report, the lower yields make sense but it should also come with a lower dollar and stock markets will like it.</p><p>2) If you think payrolls will be higher then buying the dollar and selling equities makes sense but yields should also be higher.</p><p>So what's happening? </p><p>The moves today started in the fixed income market and spread. The fixed income team at BMO argues that the move is more indicative of volatility than repricing.</p><p>"Given the relatively sparse economic fundamentals behind the move, we’re reluctant to call the repricing particularly informative, even if it is indicative of the speed with which sentiment can swing amid the broader uncertainty," BMO writes.</p><p>My sense is that the moves today are reflective of a fearful market in all assets. Money managers saw the opportunity to buy 5% paying 2-year notes and took it, which is totally understandable in an uncertain environment. At the same time (and perhaps in tandem) market participants wanted to cut equity exposure on the risk of yet-another jobs report.</p><p>That kind of fear is usually a fade but a day like today highlights how hard it is to fade fear.</p> This article was written by Adam Button at www.forexlive.com.

from Forexlive RSS Breaking News Feed https://ift.tt/jEt8Z6M