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FX Closing Note: All reverse on the JPY crosses?

The JPY has come storming back today on a barn-burner of a US 10-year auction, as the recent push at the 4.0% yield threshold seems to have brought bond buyers out of the woodwork. The $21 billion auction saw a bid-to-cover of some 3.72 vs. an average of 2.87 average of the last 10 auctions. This was the most oversubscribed auction since 1994 and may put an effective cap on the JPY crosses for now if they are to continue to follow the general moves in long bond yields.