US Dollar pursued fresh 5-month highs yesterday, as the dollar reacted to rises in yields. The benchmark 10-year Treasury yield marked the highest since 2011 as it went beyond 3%. Yields rise as treasury prices fall.
In the meantime sentiment on the major US equity indices was negative as investors grew weary on the back of the higher yeild rates. The major equity indices were also pushed lower on the back of some softer than expected quaterly sales report reported by Home Depot.
Asia reflected mixed performances this morning, as most of the major equity indices headed lower and only the ASX200 and the KOSPI were in positive territory at the time of writing.
The preliminary reading for Q1 GDP was out at 0.4% on the Q/Q basis while for the Y/Y basis it was at 2.5%. Headlines figures suggested a slower growth rate across the EZ compared with growth for the last quarter of 2017 at 0.7% for the Q/Q basis. ECB has made it clear that these figures have not derailed there growth projections however.
Today president Dragchi will speak in Frankfurt and we are also expecting the latest inflation figures for the EZ.
