Cable has extended today's decline to 160 pips as the US dollar makes broad gains.
Treasury yields are higher by 4-9 bps across the curve today as the recent bid takes a break. US 10s are at 3.71% after falling as low as 3.56% yesterday.
Today's ISM services report will be a key input for those looking for signs of a slowdown in the economy. It's one of the better forward-looking indicators and taps the enormous service sector. Earlier this week, soft reports on job openings and manufacturing helped to spark the bid in bonds and launched talk of a Fed pivot. The report is due at 10 am ET (1400 GMT).
The dollar strength is coupled with US equity weakness in what's been a episode of all trades converging. That's typical in periods of high volatility.
