Well, that escalated quickly…
UST futures fell from session highs after Dec. retail sales were only marginally below economists’ median estimate, amid indications that market participants were expecting a larger miss.
The dollar pared losses as the Treasury 10Y yield rose toward a session high after December retail sales rose 0.6% vs est. 0.7%, and as PPI rose 0.3%.
- USD remains on a defensive footing and is still lower vs most of its G-10 peers even after the rebound, having earlier extended its drop for the week ahead of the data
- USD/JPY trading at ~114.66 vs a fresh low at 114.19 set ahead of the data; USD snapped back to near 115.00 after the data in an apparent squeeze of intra-day shorts, flows are sparse. a trader in New York said