In each of the past two days it looked like 10-year yields were breaking out but they’ve been reeled back to the 4.35% level. That was a double top in Feb/March and it continues to remain in play.
Today it was the ISM services index and a surprise drop in the prices paid component to the lowest since March 2020 that did it.
Ian Lyngen at BMO sums it up: “The Fed is unquestionably
in wait-and-see mode; at issue is the fact that investors are simply tired of
waiting.”
The next big event is Friday’s non-farm payrolls and the average hourly wages component in it.
This article was written by Adam Button at www.forexlive.com.