US 10-year yields touched the lowest today since the Fed surprised markets by not tapering in October.
Yields briefly dipped below the February low of 2.568% and remain down 3.5 bps to 2.573%. The bond market has been flashing warning signs since yesterday’s retail sales report.
The highlight on the calendar today is US PPI at the bottom of the hour but the major event to watch in the day ahead might be Wal-Mart earnings tomorrow in the pre-market. If executives warn that consumer spending hasn’t picked up after the winter, risk trades are in serious jeopardy.
Already today, Macy’s reported Q1 revenues at $6.28B compared to $6.47B expected. Q1 comp sales were also down 1.6% compared to a 1.3% rise expected. Meanwhile, dark clouds surround Kohl’s quarterly results as the WSJ reports they company is planning a management reshuffle.
