U.S. Treasuries higher start, looking to build on yesterday’s gains.
Trading volume during the Asian session improved a bit as South Korea and Singapore reopened, but action remained on the light side due to continued closures in China and Hong Kong. The market received a limited set of data, but it is worth noting that Australia’s CPI was up 7.8% yr/yr in Q4, representing the sharpest rate of growth since 1990.
In Europe, expectations for a Bank of England rate cut before the end of the year are on the rise after the release of cooler than expected PPI figures for December.
The U.S. Treasury will sell $43 bln in 5-yr notes this afternoon.
2-yr: -5 bps to 4.14%
3-yr: -4 bps to 3.82%
5-yr: -4 bps to 3.54%
10-yr: -5 bps to 3.42%
30-yr: -4 bps to 3.58%