Treasury Action: yields remain above lows Treasury Action: yields remain above lows and there's been little additional reaction to the downward revision on final U. Michigan sentiment, which contrasted the usual tendency for upward revision on this report. The 2-year yield remains over 0.79% from 0.765% session lows, while the T-note yield is holding over 1.95% from a probe of 1.91% earlier. Stocks are feeling their oats into month-end and this is keeping a floor under yields after the overnight plunge.
FX Action: The dollar moved to intra day highs FX Action: The dollar moved to intra day highs versus the yen and euro following the much stronger Chicago PMI outcome, pressure EUR-USD under 1.0835, and USD-JPY to 121.65, above the post-BoJ overnight easing. Wall Street has added to gains, now at session highs.
U.S. Michigan Consumer Sentiment Preview U.S. Michigan Consumer Sentiment Preview: The final release on January Michigan Sentiment should reveal a 93.5 (median 93.1) headline following 93.3 in the first release and 92.6 in December. Other confidence measures have improved for the month with the IBD/TIPP poll ticking up to 47.3 from 47.2 and consumer confidence rising to 98.1 from 96.3. Apart from this, Michigan Sentiment statistically displays a tendency towards upward revisions in the second release.