US Dollar Dives, US Treasuries Fly

US Treasury Complex

US Treasuries soared Monday as participants scrambled to safety following the breakdown of negotiation between Greece and its creditors at the weekend. A referendum on a bailout extension is to be voted upon on 5 July, but that will be after the 30 June deadline for Greece’s EUR 1.55-M payment to the IMF

  • Yield
    • 2-yr: -7 bpts to 0.64%
    • 5-yr: -13 bpts to 1.63%
    • 10-yr: -14 bpts to 2.33%
    • 30-yr: -14 bpts to 3.10%
  • News
    • Negotiations between Greece and its official creditors broke down over the weekend
    • The Shanghai Composite fell to Bear market down territory, down more than 20% from its high on June 12th. The PBOC eased monetary policy over the weekend to stem the selling
    • Pending Home Sales in the US rose 0.9% in May, short of the consensus of 1.4% and April’s gain of 3.4%

 

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US Dollar (.DXY) Index

The US Dollar headed due South Monday

U.S. Dollar Index: -0.72% to 94.78

  • EUR/USD: +0.77% to 1.1254
    • German CPI for June missed expectations, falling 0.1% M-M Vs a 0.1% gain in May
    • Spain’s Harmonized Index of Consumer Prices was flat Y-Y in June, beating expectations and a 0.3% fall in May
    • The Eurozone’s Business and Consumer Survey fell to a worse-than-expected 103.5 in June from 103.8 in May
  • GBP/USD: +0.01% to 1.5749
    • Mortgage approvals declined to a worse-than-expected 64.43K in May versus 67.58K in April
  • USD/CAD: +0.52% to 1.2383
    • The Raw Materials Price Index rose to a worse-than-expected 4.4% M-M in May versus 4.0% for April
  • USD/JPY: -1.13% to 122.48
    • Industrial Production missed estimates in May, falling 2.2% M-M Vs a 1.2% jump in April
    • Retail Sales rose 3.0% M-M in May, better than estimates, worse than the 4.9% reading in April
  • USD/CHF: -0.84% 0.9256
    • The Swiss National Bank (SNB) intervened in the Forex market to prevent significant appreciation of the Suisse after the Greek negotiations fell through at the weekend
  • AUD/USD: +0.51% to 0.7697
  • NZD/USD: +0.27% to 0.6867

Stay tuned…

HeffX-LTN

Paul Ebeling

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