In what may be developing into a series of bad reports like the U.S., China reported more economic weakness overnight, triggering rallies in both the Dollar and the Japanese Yen. The moves into these so-called “safer currencies” suggests that investors are turning risk averse once again, leading to tremendous sell-offs in risky assets.

The U.S. Dollar is trading sharply higher against most major currencies as investors shed risk, encouraged by the news that China’s Leading Economic Index missed pre-report guesses, signaling that growth in the country is not likely to accelerate.

June Treasury Bonds closed sharply higher as equity markets collapsed and demand for safer assets increased. The rally early in the trading session sent yields plunging while triggering a breakout over the last main top at 121’05. T-Bonds began to break from the 121’14 high near the mid-session after triggering stops above the last main top at 121’05.

The GBP USD plunged following reports that a poll indicated that the minority party may win the upcoming election. Such a move will mark the first time since 1974 that the minority party has gained such power. Investors feel that this drastic change will stall the country’s efforts to shore up the U.K.’s debt issues.