Japan's yen-buying currency market intervention may not be sending tremors through the US bond market just yet, but that calm could be disturbed if Tokyo gets drawn into a drawn-out battle to prevent the exchange rate from weakening much further.
'I think Bond Vigilante is a bit extreme," says Mike Cudzil, a portfolio manager at Pimco. "I say that because the move thus far in the bond market hasn't.
The focus in markets on Wednesday will be on demand for U.S. Treasury debt after Fitch followed in the footsteps of S&P Global with a downgrade to the U.S.'s.