U.S. Treasuries slightly lower start in longer tenors while the front end is set to begin the day little changed after a night that saw some pressure on sovereign debt.
Meanwhile, movement in global stocks was somewhat subdued, but there was still a solid rally in South Korea’s Kospi (+2.4%) to end the week. The overnight data flow was moderate, including mixed social financing figures from China and an in-line reading of the eurozone’s flash Q2 GDP (0.4% qtr/qtr).
US retail sales dropped 0.4% month-over-month. This figure will feed into GDP forecasts, so there is apt to be some downward revisions to Q3 GDP forecasts.
Crude oil hovers just below $82/bbl
U.S. Dollar Index is down 0.3% at 99.66.
Yield:
2-yr: -1 bp to 4.13%
3-yr: -1 bp to 4.20%
5-yr: UNCH at 4.31%
10-yr: +1 bp to 4.65%
30-yr: +2 bps to 5.23%