From Marc to Market:
Overview: The dollar's gains were initially extended before a consolidative tone emerged. The euro has been sold to $1.0460 and has returned to almost $1.05. Sterling fell to nearly $1.2060 and has recovered though has stopped short of $1.2100. The dollar edged closed to JPY150 but stalled near JPY149.95 and has held above JPY149.65. The Australian dollar near $0.6300 and the greenback rose to CAD1.3725.
Benchmark 10-year yields are firm, though a well-received 10-year JGB auction was well received and the 10-year JGB yield slipped slightly. European yields are 1-5 bp firmer, with yields rising more in the periphery than core. UK 10-year Gilt yield is bucking the trend nearly two basis points lows at 4.55%. The 10-year US Treasury yield is up a couple of basis points to push against 4.70%. Equities are struggling. Japan and Australia markets fell by more than 1% and the Hang Seng was greeted with a 2.7% drop as it returned from the long holiday weekend. Europe's Stoxx 500 has yet to find solid footing after falling a little more than 1% yesterday. US index futures are little changed. Gold's losses were extended to nearly $1815 today, the lowest since March. It has stabilized but it is still sporting a small loss, the seventh consecutive session with a higher close. November WTI extended its drop to almost $87.75 today, the lowest level since mid-September, but is has come back bid in Europe to trade near $89.00.
Asia Pacific
The Bank of Japan efforts to slow the yield rise underscores the wider differential with the US....
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