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Yield breakdown nearing support for US, Another 2-3 days weakness possible

GM-  Early am selloff in US Equity futures has undercut Tuesday's lows given BOJ inaction, & slide in USDJPY to lowest levels since early 2014- Most of Europe and Asia remain weak, though European selling definitely subdued compared to the last few days- JGB 10s have hit negative -.20 bps in a slow 10year slide from 2% back in 2006--  US 10yrYlds selloff early lows which got down to within a hair of Feb lows, and have risen from 1.53 up to 1.56 in last couple hours- Overall, After 5 straight down days, first time since Feb, Equitiescould continue selloff into next Mon/Tuesday, but prices are getting stretched, and key support targets for SP lie near 2054-5, or current levels, and under should bring to 2045-6 so not much downside technically, but still tough to make any case for buying just yet, and will need to see some evidence of rates stabilizing with TNX getting close-  NKY and JPY for now have broken down, so Europe has followed suit while US still well above May lows and much more resilient-  Favor Utilities and Staples until more stabilization occurs while still avoiding Financials into next week-  Early gainers: QLGC, EXAS, AUDC, CTRP, AMD, RLYP while on the downside: CLF, HASI, BTX, PXD, FCAU, CAVM, KFY-  Let me know if you have questions

Another 2-3 days of weakness would allow S&P to get to attractive levels of support to buy into early next week- For now, given a break of Tuesday's lows, if S&P remains UNDER 2055 by Thursday's close, than tough to mark any kind of low, and will be likely that weakness carries over into early next week, which should also line up with yields starting to stabilize-

US TY YIELDS well off early lows after getting down to 1.53 earlier on USDJPY breakdown- Yields very stretched, but will need to see some evidence of holding here into next week before deciding to get aggressive about buying dips in Financials.   JGB 10s now at -.20 bps, with German bunds at -.02 bps-

JPY spiked lower following Kuroda INACTION last night.  Wasn't unexpected with 55% of Economists weighing in on July instead of June, but the lack of stimulus resulted in USDJPY breaking key 105 and getting down slightly under 104 at one point before a minor bounce.  This flight to safety often correlates with weakness in Global equities