Will higher yields come back to bite broader markets before the weekend?

10-year Treasury yields are at their highest in over five weeks, running close to 4.16% now after a break of its 200-day moving average. The surge higher in yields was a problem for markets earlier this week but it wasn't the case in trading yesterday.

US Treasury 10-year yields (%) daily chart

The dollar ended up trading more sluggishly and equities raced higher as tech shares were at the wheel, ignoring the action in the bond market. But can broader markets really do that for two days in a row?

There's an old adage that reads the bond market is always right. And that is something to keep in mind when trying to decipher the market moves from yesterday.

So far today, the dollar is once again a little more mixed but USD/JPY still has the makings of a potential run towards 150.00 next. And with the bond market aiding with that, it should keep the dollar underpinned if traders stick with the current momentum.

As for stocks, the S&P 500 is once again closing in on the 4,800 mark. That will be a pivotal resistance point to watch on a break or rejection of the key level.

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