US Dollar Up, US Treasuries Hammered

US Treasury Complex

Treasuries got hammered by Housing data, Greek optimism

  • The US Treasury market sold off overnight on optimism over a solution to Greece’s debt crisis. The Greek 10-yr yield was down 145 bpts Monday morning and European exchanges rallied sharply. After better-than-expected Existing Home Sales data in the US, Treasuries made another leg lower and the complex finished on its lows
  • Yield
    • 2-yr: +4 bps to 0.66%
    • 5-yr: +8 bps to 1.66%
    • 10-yr: +10 bps to 2.36%
    • 30-yr: +10 bps to 3.15%
  • News
    • Existing Home Sales increased 5.1% in May to 5.35 mln SAAR from an upwardly revised 5.09 mln (from 5.04 mln) in April, consensus had expected a rise to 5.26-M

 

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US Dollar (.DXY) Index

US Dollar rallied on better data

  • The Buck rallied against all peers Monday after Existing Home Sales rose 5.1% in May
    • .DXY: +0.23% to 94.31
  • EUR/USD: -0.07% to 1.1348
    • While the Greek debt crisis has been dominating the headlines, it has had relatively little effect on this currency pair in here.
    • Purchasing Managers’ Indices (PMI) for France, Germany, and the entire Eurozone will be released overnight
  • USD/JPY: +0.56% to 123.41
    • Japan’s Manufacturing PMI for June comes out tonight
  • GBP/USD: -0.32% to 1.5830

Stay tuned…

HeffX-LTN

Paul Ebeling

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