The decline in the US yields has now been retraced with the yields further out the curve, now up on the day again.
- 5-year yield 4.615%, +0.2 basis points
- 10 year yield 4.572%, +1.2 basis points
- 30-year yield 4.666%, +3.2 basis points
The U.S. Treasury will optional 30-year bonds at 1 PM ET, completing their coupon auctions for the week. Yesterday the 10 year note auction was a disaster with low domestic and international demand. The auction had a 3.1 basis point tail to the WI level as well.
The rising yield has the US dollar moving to the upside. The US dollar is now trading to new at session highs verse the EUR, GBP and CAD, and is near highs for the day versus the JPY. Declines vs the other currencies is also being retraced.
- EURUSD: The EURUSD has broken below the 61.8% retracement at 1.07133 and looks toward the low for 2024 at 1.06942. A move below that level would have traders looking toward a swing area between 1.0655 and 1.0675.
- GBPUSD: The GBPUSD fell below the low from yesterday at 1.25194 and the swing low from February at 1.2518. Not only is the GBPUSD now trading at a new low for the day but a new low for the year (and going back to December 13). The low price from December reached 1.2499 and is the next target.
- USDCAD: The USDCAD is trading to a new high and in the process is moving above the 1.3700 in the process. The pair did retrace into a swing area on the corrective move lower earlier today between 1.3654 to 1.3668. Buyer entered and have now pushed to new highs. The price is also above a topside trend line after trading above and below it over the last two days. The next target area is between 1.37346 and 1.3766.