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US Treasury yields drop as growth slows in China and Europe

FXStreet (Mumbai) - The Treasury prices in the US snapped three day losing streak, thereby pushing the yields higher after the data in China, Eurozone and UK showed a slowdown in the economic activity.

Currently, the 10-year yield trades 1.6 basis points lower at 1.956%, while the 30-year yield fell 1.9 basis points to 2.635%. Meanwhile, the 2-year yield is relatively resilient at 0.545%. Moreover, the long-end of the curve is more sensitive to the global growth slowdown as the 10-year notes is usually the recipient of the safe haven demand.

The yields dropped after Chinese manufacturing gauge fell to a 12-month low in April, while a similar gauge showed activities in Germany and France were slow. Meanwhile, UK retail sales growth slowed in March.

Ahead in the data, the treasuries could be influenced by the jobless claims data which will provide insight into the labor market strength in the US.

No formal statement after tomorrow’s Riga summit – TDS

According to The TD Securities Team the Eurogroup-Greece meeting tomorrow is likely to remain another no-show as major emphasis remains on the end-June meeting and because of the absence of any statement post the meet.
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Eurozone and UK data disappoints – BBH

The Brown Brothers Harriman Team reviews the Eurozone and UK data releases for today, noting that the euro area flash PMI was weaker than expected, and UK retail sales unexpectedly fell in March.
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