Sunrise Market Commentary

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  • US Treasuries cannot sustain its post-payrolls gains
    • Treasuries slid lower, as the return of risk appetite continued in a session devoid of important data or events. A late session drop in equities helped Treasuries contain its losses.
  • European bonds remain under pressure
    • The weak US Payrolls report failed to improve European bond sentiment. The feeling that the worst of the credit crisis is over and higher equities pushed the Bund below the 115.13 level towards the next main support level at 114.69. A break below would damage the technical picture and suggest the correction has further way to go.
  • FX : Dollar struggles to extend rebound
    • After a correction last week, the dollar again struggles to build out its gains, especially against the euro. The latter apparently is supported by Japanese/Asian buying interest. Also sterling continues to fight an uphill battle going into the BOE interest rate decision on Thursday.