The yields on the benchmark U.S. 10 year bond yesterday rose to 3.12%, a level not seen since 2011. The rally in bond yields is a cause for concern among investors in Dollar Equities & cash, weighing down FX & equity markets. The old adage, “rate reflects risk” is making people nervous because, on the face of it, there is no substantive economic reason for the US bond yields to benefit this much. However, the markets are rarely foolish and whether this apparent diversification of risk is simply a blip rather than an ominous precursor of wider alarm remains to be seen. Today’s Initial Jobless figure (due out at 08:30 EST) will be studied carefully, and any deviation from the expected 215k expectation could be met with short-term volatility, particularly in FX.