Midway through the day, commodity currencies and risk assets tried to stage a rally and they made some headway before the selling returned later.
The economic data was a reminder of how much the government is supporting consumption as retail sales missed badly. There were also reminders of inflation pressures in the PPI and U Mich data, but the bond market appears to be moving on from that theme.
There wasn’t much political fallout from the Biden plan with few Senators speaking for or against it. Take that as a good sign for Biden but the market wasn’t in that kind of mood, perhaps with the long weekend taking away some of the positive sentiment.
Tune in for the Chinese data on the weekend and a thin session on Monday.