A strong US retail sales report caused a pop in bond yields and the US dollar but both quickly gave back gains.
US 10-year yields touched 4.27% in the aftermath of the data, which is the highest since October but quickly reversed back to 4.22%, though they remain higher by 3.5% bps on the day.
US 10 year yields
The US dollar followed a similar path as USD/JPY rose to 145.86 but couldn’t get through the European high and slid back.
One source of restraint for yields and the dollar might be equities. S&P 500 futures are down 28 points as the market sours on the outlook for China after a series of disappointing data points earlier today.