Yields here remain virtually unchanged while they linger near record highs in the Eurozone. Even German bunds have seen yields ratchet up. Today’s auction of 10-year bonds brought yields of 1.52% on reasonable demand. In Spain 10-year yields, which hit a euro-era high of 6.78% Tuesday, eased to 6.66%. Italian 10-year yields fell three basis points to 6.10%, from yesterday’s 6.29%. The fall in yields largely due to traders covering their short positions.
The U.S. has an auction of 10-year bonds slated for today. Recent trading has seen the 10-year yielding a little less than 1.65%, which is an all-time low.
Retail sales figures show more cooling in the consumer driven U.S. economy in May. Purchases were down 0.2%, the second consecutive monthly drop. Slowing job and income growth are seen as curbs to demand.
The U.S. Producer Price Index is also down for May, dropping 1% on lower energy and food prices. It’s the second monthly decline. The core PPI, without food and fuel, rose 0.2%.
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