Roundup of overnight activity and today's economic highlights.

Last Updated:

29th July 2010

Treasuries Rise on Strong Auction Demand

Overnight Developments

US Treasuries ended the day higher on Wednesday following a second successful debt auction. This time strong demand for the five year offering proved to set the tone for the remainder of the session. Adding to the auction-inspired gains was durable goods figures which came in below expectations. Although notoriously erratic, the data also coincided with the Fed's Beige Book which underlined the view that growth in the economy is no better than sluggish. The $37bn auction of 5-year notes was covered 3.06 times, well ahead of the recent average of 2.34x and set the tone for today's 7-year offering.

Today's Key Events

UK consumer credit is expected to register another month of moderate growth, in keeping with the slightly stronger than anticipated increase in retail sales over the past few months. Nevertheless, demand for credit is likely to remain subdued for the foreseeable future given the level of uncertainty over recovery prospects in the shadow of the forthcoming fiscal squeeze and the efforts being made by households to reduce the significant level of indebtedness built up in the pre-crisis boom years.

Forthcoming - Key Events

Policy meetings - ECB 5 August, MPC 4/5 August, FOMC 10 August, Quarterly Inflation Report 11 August.