Profit-taking on overbought conditions was the general rational after bond bulls overzealously brought forward Fed rate cuts to the spring, and aggressively priced in 50 bps in easing by mid-year. The mixed signals from the data on retail sales, PPI, and the Empire State did not provide much direction. Treasuries gave back about half of Tuesday’s CPI-inspired rally as yields climbed about 7 bps across the curve.
Meanwhile, President Biden and Chinese leader Xi Jinping adopted a less contentious tone at their summit, though deep US-China disagreements remain.
Interesting Mover: NZDUSD (-0.74%) holds ground above 4-months descending channel. Key support at 0.5940 and Key Resistance at 0.6000.
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