All eyes remain on bonds.
US 10-year Treasury yields fell to 2.19% on the soft retail sales report but have now retraced the move and are back at 2.22%. At the long-end, yields fell to 2.96% but have more than retraced the decline and are at 3.00%. In Germany, the Bund is at 0.64% after falling 2 basis points to 0.60% on the report.
The inability to hold the move is another strong signal that the direction for yields is higher. That's bullish for the euro in particular as the crowded short EUR & long Bunds trade unwinds.
A key event to watch today is the 10-year auction at 1 pm ET (1700 GMT). The WI market is looking for a 2.215% yield.
