The currency markets are relatively steady as the end of the week approaches. Euro continues to stay in right range against dollar but is mildly softer against yen and sterling. It's reported that the International Monetary Fund bluntly abandoned the debt talk with Greece in Brussels. IMF spokesman noted there were "major differences" in "most key areas". And, "there has been no progress in narrowing these differences recently". And the main areas include pensions, taxes and financing. European Union president Donald Tusk warned Greece that "there is no more time for gambling" and the day is coming for someone to say "game is over".
Some volatility was seen in the bond markets. US 10 year high rose to as high as 2.489 earlier this week but tumbled sharply yesterday to close at 2.383. And the decline yesterday was the sharpest in nearly three months. US treasury sold USD 13b in 30 year bonds, which drew the strongest demand since December. Meanwhile, foreign demand rose to 52%, the third biggest on record. But overall, 10 year yield is staying in a solid near term up trend and we'd expect it to have a take on 2.5 handle sooner or later.
Elsewhere, New Zealand business manufacturing index dropped to 51.5 in May. Japan will release tertiary industry index. UK will release construction output. Eurozone will release industrial production. US will release PPI and U of Michigan sentiment.