NEWS / Foreign Exchange

U.S Market Update

U.S. Treasury futures opened higher with strength in European government bonds.  Yields continued to push lower after the release of benign March PCE numbers and a Chicago PMI reading of 52.9. Even though the Chicago PMI prices paid component was reported at the highest level in 9-months bond futures are holding near highs across the board.  The U.S. 10-year yields 4.642% and the 2-year yield has slipped back towards 4.6%.  The lower yields have helped keep pressure on the Dollar.  The EUR/JPY has given back overnight gains and moved out to new session highs at 1.3672, less than 10 pips from the all time high set last week.  Cable has move back above 2 while the USD/JPY trades off 25 pips to 119.35.  June crude is trading off $0.20 to $66.24, while Gold trades up marginally and Copper advances more than 1%.