Treasury Action: yields held steady above lows Treasury Action: yields held steady above lows following the round of second-tier Markit and Richmond Fed releases, with the bounce on the latter perhaps giving stocks a little leg up from lows, conveniently coinciding with the rebound in USD-JPY from lows. The T-note yield is holding near 2.55%, having found support earlier under 2.54%. Against the grain of $29 B in 2-year supply later the 2-year yield has eased slightly from 0.557% overnight highs to 0.548%. The 2s-10s spread continues to loiter around +200 bp.
FX Action: USD-CAD is back toward the top FX Action: USD-CAD is back toward the top of its intra day range following the disappointing Canadian retail sales data. The pairing has rallied to 1.1040 highs, near its overnight peak of 1.1049. The softer risk backdrop has weighed on the CAD as well, though firmed up oil and gold prices have perhaps offset to a degree. September 16 high of 1.1071 is the next upside target, though option backed offers are reported into the 1.1100 area.
Federal Reserve Governor Powell to speak at conference Governor Powell of the Board of Governors of the Federal Reserve System provides an overview of the 2014 Community Bank Research & Policy Initiative being held in St.Louis, MO on September 23 at 9:20 am. Webcast Link