Yields has reversed into negative territory after the weaker than expected ISM nonmanufacturing PMI data. Prices paid was at the lowest level since May 2020. Employment turned into contractionary territory. New orders were lower as well. Not a good report.

Looking at US yields:

  • 2 year 4.45% -5.4 basis points
  • 5 year yield 3.801% -4.0 basis points
  • 10 year yield 3.662% -3.1 basis points
  • 30 year yield 3.862-2.1 basis points

At the start of the US session, the two-year was 10 basis points higher in the tenure yield was 9 basis points higher.

  • 2-year yield 4.551% +4.9 basis points
  • 5-year yield 3.905% +6.3 basis points
  • 10-year yield 3.752% +5.9 basis points
  • 30-year yield 3.941% +5.8 basis points

The USD has moved to lower with the decline in yields:

  • EURUSD: The EURUSD moved back above the swing area between 1.0690 and 1.0704. The price also moved up to test the hourly moving averages. The 100 hour moving average is at 1.07127, and the 200 hour moving averages at 1.0721. The high price moved above the 100 hour moving average, but stalled right at the 200 hour moving average. The current price trades at 1.0715. A move back above the 200 hour moving average at 1.0721 would shift the bias back in the favor of the buyers.
EURUSD moves up to test the 200 hour moving average
USDJPY back below the 100/200 are moving averages