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Forex pairs in this Article » EUR/USD
FXstreet.com (New York) - According to the RBS Research Team, “US Treasuries are weaker on upbeat UK and EU PMI data, operating at 16-month highs in some cases.”

Even so, Bunds are still outperforming Treasuries by 2bp this morning. Peripheral EU spreads are 6bp to 13bp tighter with solid inflows into Spain noted. A 9-month low in the HSBC Chinese mfg. survey, and similarly weak readings in South Korea and Taiwan, got attention, but Asian stock markets were still generally higher.

Our overnight Treasury flows were generally subdued with our desk noting that the rally appears to be just fizzling out and giving up ground easily, 'in an odd kind of way.' We had central bank buying in 10-years early and then selling in that sector after and into London hours. During the European session we had a central bank buyer of 3-years and that was about it. Total Treasury inter-dealer broker volume fell to 72% of the 10-day average through this morning.
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