EUR/USD, GBP/USD, USD/JPY flows - Yields remain lower out of latest data round
Data doesn't change the overall story and yields remain extending lower, 10s closing in on 5% re-test
Mixed bag of data, claims remaining low, but some further strong inflation prints from the PPI data, alongside retail sales that are high on the headlines but a little below market on the control group, with also some slowing from heated levels on the Philly Fed.
Net story is still some price pressures that are not preventing nominal activity strength, if eating into the implied real demand results, although even control retail has a resilient underlying trend even with the minor miss and revision.
Yields are sustaining their pullback through the data with US10s still working back to nearer a 5%~ retest from there recent 5.3%+ highs.
Neither failure nor added squeeze for FX on the kneejerk out of the latest data round. Yesterday's session showed that while FX originally wanted to focus on the inflation story, ultimately the bond price action and the better dip-buyers set the lasting direction.