Treasury yields unimpressed by China data, hover near post Brexit high

Treasury yields remain unimpressed around post Brexit high clocked on Thursday amid rally in the risk currencies on strong China GDP data.

The yield on the 10-yr Treasury note in the US trades around 1.544%, just below the post Brexit high of 1.551% clocked on Thursday. The two-year yield, which mimics short-term rate hike bets, trades largely unchanged on the day around 0.685%.

The lackluster reaction in the treasury yield contradicts the risk-on action in the FX markets following the release of the better-than-expected China Q2 GDP data. The industrial production and retail sales figure also bettered estimates.

Yields rose on Thursday after the Bank of England (BOE) kept rates unchanged, defying the expectations of a rate cut. Yields also received a boost from the strong weekly jobless claims which suggested the US economy is still growing at a modest pace.