Data Cadence Slows, But Bond Auctions Represent Clear and Present Danger
The US dollar is trading with a softer tone this morning, slipping against all of its major counterparts as it relinquishes gains made on the heels of Friday’s robust jobs report. Ten-year Treasury yields are retreating from the 4.5-percent mark before a heavy slate of bond auctions, equity futures are holding steady ahead of the North American open, and implied volatility in currency markets is subsiding toward historical averages as the pace of top-tier data releases slows and investor risk appetite shows tentative signs of improvement. Friday’s nonfarm payrolls report reduced pressure on the Federal Reserve to cut interest rates....