FTSE 100 under pressure as UK yields rise

If you look across the global bond markets right now you will see that yields are rising- ergo bonds are be being sold. That is very evident across the the US bond markets which are now supporting a rebound in the USD/JPY. That was not the case earlier this morning, but now the US 10 year yield is approaching the 4.4% level and that has lifted the USD/JPY to fresh session highs near 150.90 just now. Elsewhere the UK equivalent 10 year yield is now approaching 4.80% and that is its highest level of the year to date. However, this is not immediately pushing the Pound higher versus the dollar, because as you can see, those gains are matching strides with US yields right now. What this is doing though,  is to dent the FTSE 100. The push lower in UK bonds will not please the government much either, as it adds more costs to UK debt servicing. If that is sustained it will reduce the UK fiscal headroom that the Chancellor tried so hard yesterday to restore yesterday. That in turn is producing a negative feedback loop into UK stocks. The FTSE 100 is just now trading around 8,620