European shares started 0.3% higher as investors took comfort in the softer-than-feared U.S. announcement, though it was partly as defence firms' stocks pushed higher on the likelihood that the conflict could continue for many months yet. /EU
In the currency market, the dollar .DXY also inched higher against the euro EUR= and the Japanese yen JPY=, though it was the breakdown of the traditional correlation with bond yields that traders remained focused on following volatility.
Michael Metcalfe, head of global macro strategy at State Street Global Markets, said the jump in yields and weakness in the dollar over the last month was a sign that a "negative bias" towards the greenback could be returning.
"There is just a kind of concern about the fiscal situation in the U.S. and you are getting this classic dollar weakness and higher yields," he said, adding that the next few days would be interesting too, given the run-up to the Federal Reserve's annual Jackson Hole conference.
The other area that has been whipped up by so-called "dollar debasement" worries is the global cryptocurrency market.
Bitcoin BTC= crossed the $80,000 level for the first time since mid-May as another 2% overnight jump took its rise over the last 10 days past 30%.
Gold XAU= ticked down 0.6% to $4,624 per ounce, but it too is at its highest since May, up 15% for the month. GOL/
Germany's 10-year bond yield DE10YT=RR, the benchmark for euro zone borrowing costs, was flat at 3.242%, remaining near the 15-year high of 3.275% touched last week. French 30-year yields FR30YT=RR were at 4.894% having hit an 18-year high on Monday. GVD/EUR
SPY•
