The latest retreat in Treasury yields is worth watching as it could make more sense once we get to the release of the US CPI report later today.
10-year yields peaked earlier in the week at 3.20% but has since come back down to just below 3.00% currently:
The shove lower could be a for a myriad of reasons but only one will really matter today if we see US consumer inflation underwhelm and track lower below estimates for the month of April. That will certainly bring about more 'peak inflation' talk - similar to what we have observed last month.
This is arguably going to be the key focus in the market today so expect European trading to be one with a lack of conviction for the most part once again.
As for US trading, if the consumer inflation reading does come in a touch lighter, expect that to weigh further on Treasury yields with risk trades the likeliest to benefit - even if it may be just for the short-term.
