Risk keeps in a more tepid spot so far today
The market is seeing a bit of a mixed mood with Treasuries a little lower alongside stocks, while the dollar is also slightly weaker across the board for the time being.

EUR/USD is up 0.3% just above 1.2070 on the day
The turnaround today comes as the dollar is seeing slipping across the board but so far the gains are roughly only half of the push lower seen yesterday.

Latest data from the Mortgage Bankers Association for the week ending 12 February 2021
– -4.1%
The key drop comes from yet another dip in purchasing activity with refinancing activity also seen declining once again in the past week. That points to some moderation in housing market activity though it will be interesting to see how

Dollar holds firmer even as the reflation trade pauses for breath
The dollar firmed yesterday on the back of higher yields and is so far keeping that momentum going in trading today, gaining modest ground across the board.

Comments by UK prime minister, Boris Johnson
– Will set out steps to move out of lockdown on 22 February
– Approach will be cautious, prudent, irreversible
– The unwinding of restrictions will be done in stages
Johnson is trying to manage expectations ahead of his big announcement next Monday. Expect there to be much rumours on that going

Westpac argues that the RBA has already used up its best opportunity to limit the aussie currency strength over the next six months
The firm’s senior currency strategist, Sean Callow, says that in electing to make an early decision by , the RBA had used its best shot to prevent further gains in the currency in

Comments by German health minister, Jens Spahn
Although the virus situation in Germany is taking a turn for the better, lawmakers remain guarded on the spread of virus variants and medical capacity.

30-year yields up 6 bps to 2.07% on the day
Meanwhile, 10-year yields are also up by 5.5 bps to 1.26% as the bond market selloff starts to turn into a bit of a rout going into the session ahead.

The reflation narrative keeps the market buzzing this week
The breakout in Treasury yields towards the end of last week is holding and that is keeping with the reflation theme that is sweeping across the market in the past few weeks.

Comments by ECB policymaker, Gabriel Makhlouf
The above may be referring to the US but it is a safe assumption that a similar phenomenon is being observed across the globe. Hence, how much (and at what pace) that buffer collapses in the next year or so is going to be crucial for how markets will react.