The market’s insatiable demand for US debt continues to defy commentators. This week alone we absorbed another $70 bln in coupons and yields are closer to their lows after that process was complete than their highs.
US 10-year note yields are now at 3.35% yield from the 3.48% earlier in the week before the auctions.
The buck has taken on a weaker tone with the lower yields while Equity markets have firmed. One market is risk averse, the other is not, but both low rates and firm shares have tended to undermine the greenback. EUR/USD trades at 1.4600 as the S&P trades to new highs for 2009.
