New York Session – July 30, 2009 4:21 PM

Risk was decidedly back on in NY trading as more upbeat data, a healthy Treasury note auction and better earnings reports provided more than enough impetus. US initial jobless claims were a touch higher than estimates but the fact that they remained below 600K in a week where the market was braced for a large statistical pop was “less bad” news. The 7-year Treasury auction was a healthy one and the bid/cover came in at 2.63 vs a three-auction average 2.45 while indirect bidders (foreign central banks) took 63% of the offering vs a recent 44% trend. Participants paid -3bps through the market rate, suggesting little upside pressure on yields for now. All in, it is good medium-term news for the USD after the sloppy 2- and 5-year auctions earlier this week. Risk also liked it though and this kept the US dollar better offered for the most part. Full text »

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