Another successful Treasury auction is helping underpin markets this afternoon. Equities are adding to their gains, up 2.1% and US yields are easing, down about 10 bp on the day in the benchmark 10-year maturity which is now at 2.60%. Congress did not lay a glove on Bernanke, so a sigh of relief is being seen in the markets and risk is back in style.
EUR/USD is firming rapidly, now at 1.3980 after bouncing from 1.3890. A small short here looks opportune here with a stop above 1.4010.
