Poor us data has only spurred demand for bonds pushing their yields ever lower. The 10-yr note yield dipped below 2.42% briefly this morning and is now at 2.43%.
2-year notes are stable around 0.48%.
All things being equal, lower yields tend to translate into a lower dollar. Risk aversion can play havoc with that relationship, as we have seen to spectacular effect during times of global stress, however.
EUR/USD is firmer, now at 1.2668. Central bank sellers are expected between 1.2700 and 1.2725. Stops are seen at 1.2730 while sellers return ahead of 1.2750.
