Headlines:
- Treasury yields inch higher as the push and pull this week continues
- ECB's Schnabel: The last mile in bringing inflation down may be the most difficult one
- BOE's Breeden: I have become less concerned that rates might need to be tightened further
- Germany December industrial production -1.6% vs -0.4% m/m expected
- France December trade balance -€6.8 billion vs -€5.9 billion prior
- UK January Halifax house prices +1.3% vs +1.1% m/m prior
- US MBA mortgage applications w.e. 2 February +3.7% vs -7.2% prior
Markets:
- GBP leads, CHF lags on the day
- European equities lower; S&P 500 futures up 0.1%
- US 10-year yields up 3.3 bps to 4.125%
- Gold down 0.1% to $2,033.43
- WTI crude up 0.8% to $73.99
- Bitcoin down 0.3% to $43,006
It was another quiet session as markets remain more tentative and mixed once again.
After the drop in Treasury yields yesterday, we are seeing a rebound today as the push and pull this week continues. European stocks are seen lightly changed overall while US futures are marginally higher after a slight pick up in the last half-hour.
In FX, the dollar is keeping little changed for the most part and trading more mixed. GBP/USD is up 0.2% to 1.2625 as the pair looks to return back to the 1.2600 to 1.2800 range. Meanwhile, USD/JPY is also seen up 0.2% to 148.23 amid a slight bump higher in yields.
Elsewhere, USD/CAD is down 0.2% to 1.3470 while USD/CHF is up 0.3% to 0.8723 as that exemplifies the more mixed mood in the dollar currently.
It's now over to US trading and if anything else, keep an eye out on the 10-year Treasury notes auction coming up later.
