10-year Treasury yields climb by more than 2 bps
Yields are higher across the curve and we're seeing 10-year Treasury yields hold only down by 1 bps currently, after having been weaker by more than 3 bps before the release of the French and German PMI data for August.
Both data points beat out expectations, helping to ease concerns about a cliff-edge drop in the euro area economy in Q3 for the most part. However, Germany's manufacturing sector remains at recession-like levels while the weakness is starting to spill over into the services sector (which recorded a seven-month low reading).
Given that, I find it tough to be entirely optimistic about the data beats earlier but at least it should provide a bit part relief for the euro and risk assets in the mean time.