US 10-year yields above 3% again

US bond yields are edging higher, with benchmark 10-year yields breaking above 3% again and so perhaps set to test their late February high of around 3.05%. The move up in yields seems to be helping the dollar, which has been on the front foot overnight

The dollar has regained ground against the euro to trade close to $1.19, up from a low of almost $1.20 at one point yesterday, and has edged up to around $1.3550 against the dollar from over $1.36. The US currency has also strengthened against the yen, to almost Y110

ECB member Villeroy says the time period between when QE ends and the first hike in euro interest rates is likely to amount to “quarters rather than years”. This is broadly in line with market expectations, which see a small hike in the deposit rate around the middle of next year

GDP growth in the German economy slowed to 0.3% q-o-q over the first three months of 2018, from 0.6% in Q4 2017, with the annual rate of  growth decelerating to 2.3% from 2.9%

First quarter labour market data are due in the UK this morning. The unemployment rate is expected to edge down to 4.2%, according to the consensus, from 4.4% in the final quarter of 2017, while annual earnings growth is forecast to pick up to 2.9% from 2.5%.

Other data due include a second estimate of first quarter GDP growth in the Euro area as well as retail sales in the US