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The New York bid for the yen did not carry into the afternoon, and this hour the seller's prompt is visible on the rates screen. Into the New York mid-morning the yen fell a median 13.8 basis points against all seven of its major counterparts, with no Japanese release anywhere near the window — and the Treasury rally that framed the American open reversed inside the same hour.

The two-year note future slipped 4.6 basis points of price, the ten-year 16.0 and the ultra bond 36.7, yields marked higher at every tenor; over four hours the ten-year now stands flat, the opening hour's rally fully round-tripped, and only the long bond keeps a gain. The repricing was led from the American side — the ten-year Bund future gave back just 5.7 basis points of price against the T-note's 16.0, German yields falling relative to Treasuries on the hour — and same-day coverage has yields rising as the market turns toward the week's data, with roughly 60 percent of a quarter-point hike priced for next week's Federal Reserve meeting and inflation due Friday.

The dollar traded its curve immediately: firm on six of its seven legs, it took 17.2 basis points from the yen. That is the day's pattern distilled — when American front-end yields fall the yen gets bought, when they back up it gets sold — and nothing in the yen's own case moved: a Bank of Japan hike the week after next remains priced at 97 percent, and the currency is still up almost 4 percent this month, the best of the majors.

Sterling is the hour's second story. It went into the 13:15 GMT Treasury Select Committee testimony as the board's firmest currency, positioned for the risk that Governor Bailey and his colleagues leaned hawkish; an hour into the hearing that bid has unwound — down on six of seven legs, 9.4 basis points to the dollar, its only gain the smallest yen leg on the board at 7.6.

No line from the witnesses has yet shifted the published picture, which into the session was a hold at 3.75 percent next week with the hawkish tail resting on Megan Greene's surprise July vote to hike and oil's run toward 100 dollars — so the fade reads as the hawkish hedge coming off as the testimony offered it nothing, rather than a reaction to anything said.

The buyer on the other side of the yen's largest leg is Canadian. The Canadian dollar was the hour's firmest currency, higher on all seven legs and taking 17.9 basis points from the yen, as the oil impulse that paused through the London morning returned: Brent is pushing toward 100 dollars a barrel — near 98 through the day, with WTI around 93 after last week's near-ten-percent surge on the Strait of Hormuz escalation — and the currency is carrying that bid through the very day Ottawa's counter-tariffs on 20 billion Canadian dollars of American goods took effect, with the federal budget due at 20:03 GMT.

Around the edges the euro is quietly firm on the crosses but soft against the dollar and Canadian dollar into Thursday's European Central Bank decision; the franc is offered on five of seven legs, still the market's preferred borrow; the kiwi drifts. The broken 155.20-155.25 floor is still overhead and untested from below.

The day's ledger now reads: London walked the yen lower five hours out of six, New York's first hour bought it back, and New York has now sold it again with the curve. A trend this well priced rarely resolves before its data, and the data is Friday — until then the yen's price is a referendum on American rates run hourly, and this hour the rates side voted against it.